On the podcast today I have Michael Braude for our monthly economic forecast.
We discussed the impact of the current Corona Virus outbreak and what it means for the economy and the different areas within it. There are a number of different commodities being affected and there are risks of further impacts into the future.
On the episode:
- The Corona Virus is in full swing and the number of cases has increased dramatically since our last economic forecast. This is starting to impact the economy and the effects are starting to be seen globally. Michael explains different impacts that are happening and that there may be further effects into the future.
- The Corona Virus is also affecting the commodities and Michael explains the different commodities that are being impacted currently.
- Equities are up at the moment in Australia, despite the virus and the recent bushfires that have gone through many parts of the country.
- The Australian Dollar has moved a bit of late and it hit he 70c point before dropping again.
- The FX market is currently being affected as well and both the euro and Australian dollar are the two that have been hit of most.
- Moving forward it is wise to keep an eye on the Corona Virus and whether it turns into a pandemic. This can cause large effects on the economy. Economically speaking the virus came at a bad time for China as it was already starting to have market concerns heading into this.
- The banks are also an area that we need to watch especially in the first half of this year, along with their interest rates, housing and investment. The next monetary statement and budget will come out in May and will help us to understand the position a lot more and how the response has been to economic stimulus over the first half of the year.
- The second half of the year will provide us with the US election which may also have an impact on the economy.