Daily Comment (May 12, 2020)

by Bill O’Grady, Thomas Wash, and Patrick Fearon-Hernandez, CFA

[Posted: 9:30 AM EDT]

Investors today continue to focus on pandemic lockdowns being eased around the world, including the reopening of schools in much of Europe, but a bit of caution is rising as some countries and localities are seeing a rebound in cases.  As always, we review the key pandemic and related news below.

COVID-19:  Official data show confirmed cases have risen to 4,201,921 worldwide with 286,835 deaths and 1,467,412 recoveries.  In the United States, confirmed cases rose to 1,347,936 with 80,634 deaths and 232,733 recoveries.  Here is the interactive chart from the Financial Times that allows you to compare cases and deaths among countries, scaled by population.


Real Economy

Financial Market Impact

  • Data from the Wilshire Trust Universe Comparison Service shows public pension plans in the U.S. lost a median 13.2% in the three months ended March 31, slightly worse than the previous record decline in the fourth quarter of 2008.  Despite a partial rebound in performance since the beginning of April, the loss will likely make pension costs even more burdensome for states, counties, and cities going forward, which will probably impact their creditworthiness for years.

U.S. Policy Response

Foreign Policy Response

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