The Daily Shot Brief – April 29th, 2020



United States: The biggest post-WW-II drop in consumer spending will drive the contraction in the GDP.

Source: BlackRock


The decline in the second quarter is expected to be much worse (the consensus is a 26% contraction). Below is Goldman’s monthly current activity indicator (CAI).

Source: Goldman Sachs


The Fed’s balance sheet, as a percentage of the GDP, is in uncharted territory this year.

Source: @WSJ; Read full article


Eurozone: Demand for consumer and housing loans is near 2008 lows.

Source: Pantheon Macroeconomics


However, demand for corporate credit increased sharply, as companies seek fresh liquidity.

Source: @fwred, Pictet Wealth Management


China: China’s regional banks’ funding costs have been declining with interbank rates. However, the PBoC has resisted cutting the deposit rate, holding large banks’ funding costs fixed.

Source: @shuli_ren, @bopinion; Read full article


Equities: The S&P 500 has decoupled from consumer confidence.

Source: Piper Sandler


Global Developments: If policy actions are successful, the cumulative impact of the current crisis could be well below what was seen in 2008, according to BlackRock.

Source: BlackRock


Food for Thought: Reasons why uninsured Americans don’t have health coverage:

Source: Deutsche Bank Research

Edited by Devon Lall

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