Covid-19: Will Sunak’s latest stimulus aid DB sponsors?

Chancellor set to unveil further emergency loan plans

Rishi Sunak is set to roll out a fresh package of stimulus, aimed at providing liquidity to the “squeezed middle” of UK plc, according to the Financial Times. Emergency measures have already been announced for “investment-grade” large companies and for small businesses, but companies with turnover in excess of £45m and who do not issue corporate bonds are yet to be addressed. Details of the scheme are yet to be announced, but could involve interest-bearing, government-backed loans, and will be of vital importance to the covenant strength of many smaller defined benefit schemes.

Oil price spike leads global stocks higher

The price of oil has jumped dramatically after US president Donald Trump revealed discussions are taking place to end the price war between Russia and Saudi Arabia. The Republican politician tweeted that he expects a reduction of 10m barrels. The news saw the S&P 500 make a positive start today, while the FTSE 100, which hosts oil companies including BP, was also up. The more domestically focused FTSE 250 closed down 0.76 per cent.

Investors braced for credit crisis in emerging markets

Emerging market debt investors are eyeing serious losses as the world’s developing economies struggle to overcome the impact of the coronavirus pandemic, accordion to the Financial Times. Commodity prices have tumbled in response to the outbreak, with emerging market currencies also falling against the dollar.