Economy / 22

Dow Expected To Open Up More Than 1100 Points

March 18, 2020

On Friday morning, the Dow Jones Industrial Average rose more than 1000 points before paring gains to rise 581 points, or about 2.8% to 21807.11. The Nasdaq Composite was up 207.16 points, or 2.88%, at 7,408.58. The coronavirus crisis has sent shock waves through debt markets, prompting sharp swings in U.S. Treasury yields, which rise when bond prices fall.

Coronavirus | France locks down over pandemic fears

March 18, 2020

French President Emmanuel Macron has imposed a two-week lockdown, declaring a "war" on the " invisible enemy " of the coronavirus and canceling the second round of municipal elections. Exemptions could be given to long-term residents in the EU, border area workers, family members of European nationals and diplomats. France had previously closed non-essential businesses , but The New York Times reported that "Parisians took the French government's partial lockdown measures in stride ...

World markets plunge as Fed’s move fails to heal panic

March 18, 2020

Wall Street had a grisly start to the week, with the Dow Jones Industrial Average sliding by 3,000 points, or 13 percent, to end the day at 20,188, a few hundred points above where it was when President Donald Trump took office. European Union finance ministers also spoke separately. Some analysts are concerned that the US Federal Reserve may have reached the limits of its power to fend off recession as the coronavirus spreads.

Fed launches emergency short-term lending facility amid coronavirus crisis

March 18, 2020

The Fed said the Treasury will provide $10 billion of credit protection to the central bank's commercial paper operation. The second facility is also meant to mostly assist the commercial paper market and allows a wider range of financial institutions to access short-term loans from the Fed - in this case investment banks and securities trading divisions of large banks.

Stocks nosedive on Wall Street

March 18, 2020

It came today as Wall Street recouped some of Monday's record losses. They're down 50% so far this year. Now the talk of federal aid for an ailing economy. economic growth. Stocks advanced as President Donald Trump , Treasury Secretary Steven Mnuchin and Vice President Mike Pence gave a televised briefing to outline the steps the administration is taking.

Oil: No end in sight for crude oil - TDS

March 18, 2020

Analysts have warned that a major glut was looming in oil as a shutdown of air, road and sea travel, along with many parts of the global economy, intersected with production hikes by Saudi Arabia , which is out to expand its market share.

Mnuchin: Trump Wants Checks Sent to Public in Virus Response

March 18, 2020

US Treasury Secretary Steven Mnuchin briefly appeared alongside Trump during the presser and noted that he was discussing measures with congressional leaders that would allow officials to provide emergency funds "immediately" to Americans. On Monday, the Dow Jones Industrial Average experienced its worst rout since 1987's "Black Monday". "And I mean now - in the next two weeks". The Fed on Sunday slashed the benchmark borrowing rate to zero, ramped up purchases of Treasury debt, and ...

Uber and Lyft suspend Pool and Shared rides amid COVID-19 outbreak

March 18, 2020

Andrew Macdonald, senior vice president of Uber Rides, stated that their goal is to flatten the curve on virus spread in the cities that they now serve. Riders are also being asked to consider the safety of their drivers by washing their hands before and after a ride, sitting in the back seat and rolling down the window to improve ventilation.

Single GOP Congressman Stops Coronavirus Relief Bill From Moving to Senate

March 17, 2020

The bill still needs to be passed with some technical changes in the House on Monday before it even reaches the Senate - though attempting to pass the updates with a unanimous consent rule can be derailed by just one member. In addition to being on Capitol Hill Monday, Senate Republicans invited Mnuchin to speak at their Tuesday lunch, according to a person familiar with the matter.

Chancellor Rishi Sunak announces £330bn fund for business loans during coronavirus outbreak

March 17, 2020

However, Labour's shadow chancellor John McDonnell suggested the package did not go far enough and questioned what would be done by ministers to help people in the private rented sector. To support the food industry and help provide meals for people who need to self-isolate, we will relax planning regulations to allow pubs and restaurants to start providing takeaways without a planning application.

No End In Sight To "Enormous Inventory Build" In Oil

March 17, 2020

With the global oil benchmark, Brent crude, falling below the $30 per barrel mark on Monday, the oil-dependent Nigerian economy has come under more pressure from the sharp drop in government's expected revenue. Oil erased gains as the shutdown of swaths of the global economy triggered a meltdown in fuel demand. American shale oil producers are also being punished by the low crude prices, with a number of those companies announcing they will be cutting drilling activity this year.

Case for coordinated fiscal stimulus growing stronger by the hour

March 17, 2020

There are also about 20 more countries interested in support. Considering the epidemic's broad reach across many countries, the extensive cross-border economic linkages, as well as the large confidence effects impacting economic activity and financial and commodity markets, the argument for a coordinated, global response is clear.

Dow Jones falls 3,000 points, on track for worst month since 1987

March 17, 2020

On Tuesday, the iEdge S-Reit Index, which tracks all property trusts listed in Singapore, fell 64.22 points or 5.6 per cent to 1,087.88. The S&P 500 opened higher by 39.53 points, or 1.66 per cent, at 2,425.66. Tuesday's stabilisation saw Australian shares close 5.9 per cent higher, their biggest daily percentage gain since October 2008, after plunging almost 10 per cent on Monday.

Qantas cuts 90% of global flights following coronavirus outbreak

March 17, 2020

Tourism Minister Simon Birmingham said at the weekend that airlines had enough cash reserves to remain viable for now, but did not rule out a bailout to stop Qantas and other carriers going under. Qantas said on Tuesday its previously announced flight cuts in place from the end of May to mid-September remain in place. Qantas also flagged that the "precipitous decline" in demand and resulting cuts meant it was confronted with a significant labour surplus.

US Crude Prices Close Below $30 on Massive Supply, Recession Fears

March 17, 2020

The worldwide benchmark fell as low as $29.52 a barrel, its lowest since January 2016. US West Texas Intermediate crude lost around 23% for their biggest percentage decline since 2008. Numerous U.S. oil companies have swiftly cut back spending, with analysts anticipating consolidation or restructurings as a result of the supply shock.

Treasury chief rejects fears virus will spark U.S. recession

March 17, 2020

The virus has prompted the shuttering of schools, the cancellation of sporting and entertainment events, and outright travel bans, while fears over the novel coronavirus have contributed to a turbulent month on Wall Street. Mnuchin once again said that he would focus on getting "economic relief to the people that are impacted by this" before arguing that he "kind of" describes this as being "in the second inning".

Donald Trump: Coronavirus outbreak could last until July or August

March 17, 2020

President Trump announced the guidelines in a press conference Monday, estimating the coronavirus wouldn't be contained until July or August at the earliest and entertaining the notion of an American recession. Trump's remarks come as he and Democrats clash over his handling of the virus. Still, he said he was not responsible for the issues with the CDC's test kits, the rollout of which was hamstrung for weeks by a manufacturing flaw as well as bureaucratic obstacles.

US Fed slashes key interest rate, rolls out massive response to pandemic

March 17, 2020

In a bold, emergency action to support the economy during the coronavirus pandemic , the Federal Reserve on Sunday announced it would cut its target interest rate near zero. "I can tell you, I'm very happy". The Fed and global central banks acted aggressively on Sunday in a move reminiscent of the sweeping steps taken just over a decade ago to fight a meltdown of the global financial system.

Amazon to hire 100,000 workers as online orders surge on virus worries

March 17, 2020

Are you changing your routine or going about your business as usual? Amazon's logistics operation is already straining under the current demand and often unable to offer same-day deliveries (or even any deliveries in the next couple of days) through Amazon Prime and Fresh in many places in the United States.

Reserve Bank emergency official cash rate cut expected

March 17, 2020

Orr urged all New Zealanders to talk to their banks - "this is the time to over-communicate". BNZ's Stephen Toplis said the travel restrictions announced were a "game changer" that locked in a deep recession. Central banks around the world have been cutting rates to counter the economic impact of the virus. "But we are all singing off the same song sheet".

Airlines could be broke by May: Centre for Aviation

March 17, 2020

An analytical report from CAPA - Centre for Aviation has issued a warning for the airline industry . "Coordinated government and industry action is needed - now - if catastrophe is to be avoided", an article claims. "If that is the default position, emerging from the crisis will be like entering a brutal battlefield, littered with casualties". Those tested negative will be allowed to travel and will be quarantined on arrival in India for 14 days.

Coronavirus pandemic forces Buffett to cancel massive annual shareholder weekend

March 16, 2020

Berkshire's annual meeting normally lasts about 15 minutes but is preceded by five hours in which Buffett and Vice Chairman Charlie Munger answer shareholder questions. The weekend normally attracts more than 40,000 people. The impact of the coronavirus pandemic on Buffett's annual gathering could bring another change: The billionaire investor had been planning to give more speaking time at this year's meeting to two of his key deputies, Ajit Jain and Greg Abel.

US stocks dive more than 10% on recession worries

March 16, 2020

The Dow Jones Industrial Average fell 9.7 percent, or around 2,250 points, to 20,935.16, while the tech-rich Nasdaq Composite Index tumbled 6.1 percent to 7,392.73. " The speed of the impact to middle America, let alone the global community, is relatively unprecedented ", he added. That meeting was followed by a weekend full of pronouncements from cities and states across the US urging Americans to self-quarantine and shuttering non-essential businesses like bars, restaurants, and ...

Apple fined $1.2 billion over sale restrictions in France

March 16, 2020

Isabelle de Silva, president of the authority, said in a statement that "given the strong impact of these practices on competition in the distribution of Apple products via Apple premium resellers, the Authority imposes the highest penalty ever pronounced in a case".

What do the Fed's latest moves mean for U.S. consumers?

March 16, 2020

The Fed also announced a QE program that would include the purchase of US$500 billion of Treasury Securities as well as US$200 billion of Mortgage Backed Securities (MBS). Lower rates can also give home buyers more purchasing power, making it easier for them to afford a more expensive house. It also said that banks can use additional cash buffers that were imposed after the 2008 financial crisis for lending.

China Jan-Feb factory output down 13.5% from year ago

March 16, 2020

The collapse in activity affected every sector of the world's second biggest economy, as the epidemic and draconian measures created to contain it delivered an unprecedented shock that is now being replicated around the world. "This is not the end of the nightmare", Iris Pang, chief economist of Greater China for ING, said on Monday. Retail sales , which include spending by governments, businesses and households, fell 20.5% year-on-year (link in Chinese) for January and February.

Bill Gates to focus more time towards global health

March 16, 2020

Publishing in his LinkedIn blog post, Gates, the visionary broke down his decision stating that "With respect to Microsoft, stepping down from the board in no way means stepping away from the company". Gates matured in Seattle with 2 siblings. He began programming computers as a 13-year-old student, and fell in love with the machines. That is until now, as Gates has officially announced his retirement from the Microsoft's board of directors.

JetBlue Bans Passenger Who Found Out

March 16, 2020

The Port Authority of NY and New Jersey immediately began to clean the areas he came into contact with based on security footage, including gates, security checkpoints , check-in counters, kiosks, elevators, and restrooms, CNN reported .

Nike closes all stores in USA, other countries to prevent coronavirus spread

March 16, 2020

Stores will be closed from Monday, March 16 through Friday, March 27. However, Nike is still keeping open its stores in South Korea, Japan, most of China and in " many other countries ", based on daily assessments of the pandemic. The company also announced some safety measures for its staff, including an option to work from home, staggered work schedules and additional cleaning measures.

Federal Reserve slashes interest rates, eases banking rules

March 16, 2020

Many investors have said that they are anxious that the Fed's huge moves Sunday night might foreshadow worse news about the economy or the coronavirus than expected. The virus' march across America from Washington to California to NY has closed schools, sparked runs on grocery stores, shuttered retailers, and put an end to sports events big and small, and America's top infectious disease expert Dr.

Google, Walmart join USA effort to speed up coronavirus testing

March 16, 2020

Despite the president's statement to the nation that Google has "made tremendous progress" on a site that will help people determine whether they should seek a test, Verily said the tool it is developing for Covid-19 testing is in the early stages of development.

Brazil's Bolsonaro Reportedly Tests CoVID-19 Positive After Trump Interaction

March 16, 2020

An emergency declaration would allow a state to request a 75% federal cost-share for expenses that include emergency workers, medical tests, medical supplies, vaccinations, security for medical facilities, and more, according to a letter Democrats sent the president earlier this week.

United Kingdom airline Jet2.com cancels flights to Spain over coronavirus

March 15, 2020

Spain has seen a huge increase in infections of the past couple of days. The airline has announced that it has cancelled all flights to mainland Spain, the Balearic Islands and the Canary Islands with immediate effect following measures introduced in Spain to prevent the spread of COVID-19.

Incoming Trump chief of staff to self-quarantine

March 15, 2020

Vice President Pence had said on Thursday evening that Trump would sign the bill while visiting the Atlanta headquarters of the Centers for Disease Control and Protection. Trump announced last Friday night that he was replacing acting White House Chief of Staff Mick Mulvaney with Meadows - changing the top leadership of the White House in the midst of the coronavirus outbreak.

Nike closing all United States stores for 2 weeks due to coronavirus

March 15, 2020

The edict affects Nike stores in the U.S., Canada , Western Europe, Australia and New Zealand and goes into effect Monday, CNBC reports. U.S. sportswear giant Nike says it will shut down all retail stores in North America, Europe, Australia and New Zealand, to do its part in stopping the Covid-19 pandemic.

Carnival Cruise Line Announces Pause In Service

March 15, 2020

The three major cruise lines based in South Florida, all of which have canceled cruises into April in the worldwide novel coronavirus pandemic, put out refund options for affected customers Saturday. As with our announcement yesterday regarding USA sailings, we expect to return to service on April 11, 2020. The luxury cruise line has announced it's canceling "Crystal River Cruises' voyages scheduled to embark from March 26 to April 11 as well as Crystal Esprit's April 10 sailing ...

France, Spain on lockdown over coronavirus

March 15, 2020

We've had to close Bergamo cemetery for the time being to cope. A little more than half of those new cases occurred in Lombardy. Madrid's regional leader Isabel Diaz Ayuso said she did not have the power to put the capital on lockdown and that such a decision would have to come from the central government.

European Central Bank ready to act on widening bond spreads - Lane

March 15, 2020

Bank of France Governor Francois Villeroy de Galhau declared earlier that the ECB will use all the flexibility it has to combat fragmentation in the euro area if necessary. Surging bond spreads - the difference between yields on debt of stressed nations and safer options such as Germany - were a hallmark of the euro zone's 2012 debt crisis that nearly broke up the currency bloc.

U.S. airlines start cutting flights due to UK, Ireland restrictions

March 15, 2020

The message from Delta CEO Ed Bastian cited a number of unfortunate circumstances that have converged to create a ideal storm of demand fall-off, including the conference and event cancellations as well as restrictions on travel imposed by businesses and some governments, as with President Donald Trump's spectacularly messy announcement of a ban on travel from Europe earlier this week.

Virgin cuts flights, freezes spending as virus bites

March 15, 2020

The Group said "while the overall risk in Australia of contracting Covid-19 in the community remains low", it has taken steps to enhance protection on its flights. The travel period for the Virgin Australia sale is from March 2020 - December 2020 (route dependent). Passengers with worldwide bookings up to June 30 can make changes to their flight date and destination without paying fees.

Government advises against mass gatherings

March 15, 2020

Prime Minister Scott Morrison advised all Aussies to reconsider any overseas travel they may have planned. As thousands of Australians continued to front hospitals and medical centres for testing yesterday, the government launched its long-awaited public health campaign to provide advice to the public on how to slow the spread of COVID-19 and reduce unnecessary pressure on health services.

Yes Bank moratorium to end soon, says FM

March 15, 2020

Kapoor's successor Ravneet Gill had chosen to report stress in the March 2019 quarter, leading for the maiden quarterly loss, and followed it up with two more quarters of weak results. Following which, RBI's moratorium on the bank will be lifted at 6 pm on March 18. The rescue plan is aimed at restoring customers' trust and minimizing the threat of withdrawals after restrictions are lifted.

After crude price fall, govt ups duty by Rs 3/litre

March 15, 2020

A senior oil marketing company executive said the duty hike would offset the fall in crude prices and not result in price hike from current levels. The government on Saturday hiked excise duty on petrol and diesel by a steep Rs 3 per litre each to garner about Rs 39,000 crore additional revenue as it repeated its 2014-15 act of not passing on gains arising from slump in global oil prices.

COVID-19 impact: Twitter tells global staff to work from home

March 15, 2020

She also said though the company is exercising work from home, Twitter would continue to support its employees and the other people associated with the company. Twitter will also be organising virtual talks, called #FlockTalk, which will have twitter employees from around the world coming together to discuss COVDID-19 related issues and have health-related conversations.

Amazon Signs Deals for Four New Wind and Solar Projects

March 15, 2020

Wilfred Bruijn, CEO of Anglo American in Brazil , commented, "With this agreement and the contract for the construction of a wind power plant in Bahia signed in December, we will now be sourcing 90% of our energy from renewable sources, leading to a 40% reduction in Carbon dioxide emissions associated with our activities".

National emergency should help hospitals care for more COVID-19 patients

March 15, 2020

More than 2,000 people in the United States and more than 145,000 people worldwide have been diagnosed with COVID-19, better known as coronavirus. The action comes after President Donald Trump declared the outbreak a national emergency , freeing up money and resources to fight it, then threw his support behind the congressional package.

Chinese billionaire Jack Ma offers US virus test kits masks

March 15, 2020

There's a general shortage of supplies like masks in the us right now. "This crisis presents a huge challenge to all humankind in a globalised world". The US government has come under heavy criticism for the slowness of testing for the virus, and public health officials have rebuked President Donald Trump for playing down the seriousness of the fast-spreading pandemic.

Gas prices drop again, now below 90 cents per litre

March 15, 2020

According to Gasbuddy , the average price in Madison is $2.11 per gallon, while the lowest is $1.89. Only three states show regular grade above $3/gallon at the time of this writing: California, Washington, and Hawaii. The average price in Toronto was 76.6 cents in 2004, according to Statistics Canada . The statewide average is $2.23 for a gallon of regular unleaded eight cents lower than last week, according to the AAA New Mexico Weekend Gas Watch.

TSX, Wall Street surge at the start of trading

March 15, 2020

The stock market had its biggest drop since the Black Monday crash of 1987 as fears of economic fallout from the coronavirus crisis deepened. The pan-continental Stoxx Europe 600 rose 2.3% at the open Friday. After earlier thinking that the virus could remain mostly in China and that any dip in the economy would be followed by a quick rebound, investors are seeing the damage and disruptions mount, with Italy locking itself down, the National Basketball Association suspending games and ...

Bill Gates quits Microsoft board to spend more time on philanthropy

March 15, 2020

In addition to giving up his role on the board of Microsoft, he will also give up his seat of the board of Berkshire Hathaway , the conglomerate headed by fellow billionaire Warren Buffett. "The leadership at the Berkshire companies and Microsoft has never been stronger", Gates said in a LinkedIn post , "so the time is right to take this step".

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