- Rolls-Royce says it will shed 9,000 jobs in response to the covid-19 crisis – it expects any recovery in the airline industry to take several years (click here to read more).
- JPMorgan Asia Growth & Income (JAGI) reported interim results to end-March with the total market return coming in at (6.6%) compared with (9.3%) for the company’s benchmark index, the MSCI All Countries Asia ex Japan Index. The total NAV return was (11.5%). JAGI’s managers, Ayaz Ebrahim, Robert Lloyd and Richard Titherington had this to say on the fund’s outlook:
- “After a dismal quarter to the end of March and the worst start to the year for Asian equities since 1991, market sentiment is now at the crossroads of panic sentiment and compelling valuations. Companies’ revenues and supply chains are being hit whilst commodity prices and freight rates are reflecting an extremely cautious outlook with current prices indicating material demand slumps in the near term. This backdrop certainly paints a challenging outlook for the coming months. Yet, notwithstanding the unknowns, the coordinated response we have seen from global central banks and governments provides some comfort and most Asian countries have committed to further stimuli should the demand shock become more material. The true impact of demand losses can only be gauged over time, however, valuations are arguably very attractive and there will come a point at which we are comfortable buying into such market weakness. Some of the bigger trends that have been happening in Asia and across the globe, such as e-commerce growth, more widespread use of mobile and PC gaming, as well as lower interest rates, are mostly all being accelerated as a result of Covid-19 and its subsequent economic impact. A continuing low inflation environment remains our most likely longer-term scenario, due to changing technological trends and demographic forces. However, there is the risk that substantial and sustained government interventions could become increasingly ineffective and that central bank monetary policy may not always be able to influence the direction of the real economy as it has done historically.”
- Third Point, the manager of Third Point Offshore Investors (TPOU/TPOG), announced that Daniel S. Loeb has resumed his role as the sole chief investment officer (CIO) of the Third Point Funds. It was also announced that Munib Islam, who had been made co-CIO in 2019, will step down and retire from the firm.
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