The spread of COVID-19 continues to dominate both our lives and financial markets during the first half of 2020. In this challenging environment we are constantly monitoring the outbreak, policy actions and the economic effects on the wider economy, individual commercial sectors and our investments.

This is clearly a very serious situation and, in many ways, exceptional but it has also generated an unprecedented global response, both from a fiscal and a science / research perspective. We believe that governments around the world, particularly in the UK and Europe, now have this situation under control medically, socially and financially. We also believe there is now a far greater understanding of its impact, although there is still more to discover. However, the rate of new infections and deaths in the UK and elsewhere continues to fall with the ‘R rate’ consistently remaining below 1 over the past month across much of Europe – meaning that the extremities of the virus should materially disappear in the coming months. Thus far, UK hospitals have not been overwhelmed by the situation and have even begun scaling down temporary ‘emergency’ hospitals because they were not utilised in full.

Click here to read our Recent Market Volatility and COVID-19 – Situation – Analysis and Observations.