There have been undoubted signs that parts of the business world are working well with the coronavirus restrictions. Stock markets on both sides of the Atlantic bounced back (the US at the fastest rate since 1933) and in Germany the DAX was up nearly 11% yesterday.
At Smart we are continuing to function efficiently, with all our staff working hard. Seeing how many work meetings, social events, fitness classes and even dinner dates have switched to Zoom so effortlessly, you do wonder how the world will change afterwards.
Germany has been a real source of optimism in many ways, with its far-higher testing rate indicating a much lower danger from Covid-19. Apparently their low fatality rate (below 0.5%) is down to their typical case being a fitter middle-aged skier catching it in northern Italy, but it could also simply show that many more people have had it and recovered than we assume. That viewpoint is supported by a fascinating article in the FT, based on modelling by Oxford University epidemiologists, that also suggests that many more of us have had the virus and recovered.
Of course none of that is to suggest that we shouldn’t continue to lock down and look after each other. Those of us with family working in healthcare feel that especially and know that we have a while to go before anything like normality returns.
International business and cooperation will be at the forefront when we need ventilators, vaccines and any other way of sorting this thing out sent from country to country, and our business department is ready to help in any way.
On the currency markets the pound strengthened by nearly two cents yesterday. For those moving money back to the UK this is a good time for a spot contract, but if you plan to move money back in the 12 months ahead, why not lock in today’s rate with a forward contract?
Call your trader on 020 8108 5337 to discuss your currency strategy.
