Written by Gary
COVID-19 is pushing world economy to the brink. CEO expects ‘bad recession’ and financial strain akin to 2008. A sobering coronavirus diagnosis: At least nine months of economic pain. I hope you sold this morning!
The Market in Perspective
| Here are the headlines moving the markets. | |
 | United Airlines drastically cuts California flights to match demandUnited Airlines Holdings Inc said on Tuesday it was temporarily, but significantly, reducing daily flying in and out of Los Angeles and San Francisco airports to better match demand that has dropped due to the new coronavirus. |
| U.S. economy will eventually reopen but with big changes: KudlowThe Trump administration is aiming to reopen the U.S. economy when the nation’s top health experts give the go-ahead, but Americans’ lives will be drastically different, White House economic adviser Larry Kudlow said on Tuesday. |
| Goldman Sachs must face class action over conflicts of interest, risky mortgagesGoldman Sachs Group Inc must face a shareholder class action accusing the bank of hiding conflicts of interest, including behind-the-scenes dealings with a prominent hedge fund manager, when creating risky subprime securities before the 2008 financial crisis. |
| Former Fed chief Bernanke sees bad year, no quick recoveryThe U.S. economy could shrink 30% or more this quarter as stay-at-home orders aimed at slowing the coronavirus outbreak choke off business, and it could be a couple years before the economy regains its footing, former Federal Reserve Chair Ben Bernanke said on Tuesday. |
| Facebook launches new chat app for couplesFacebook Inc on Tuesday launched a new messaging app for couples called “Tuned” that allows them to chat, share photos and music as well as have a timeline of shared memories. |
| U.S. SEC’s Clayton says companies seeking bailouts must disclose plans, communicate with investorsThe head of the U.S. Securities and Exchange Commission (SEC) said on Tuesday that companies in discussions about bailouts resulting from the economic impact of the coronavirus outbreak should disclose to investors where they stand. |
| WeWork sues SoftBank after $3-billion tender offer falls throughWeWork’s owner, The We Company, has sued SoftBank Group, challenging its largest shareholder’s decision to terminate a $3 billion tender offer for shares in the office-space sharing firm. |
| U.S. treasury secretary to seek additional $250 billion for small businessU.S. Treasury Secretary Steven Mnuchin said on Tuesday that he would seek an additional $250 billion to support small businesses hurt by the widespread economic slowdown. |
| Exxon lops 30% off 2020 spending, deeper and later than rivalsExxon Mobil Corp on Tuesday throttled back investment in shale, natural gas and deep water production, cutting planned capital spending by 30% this year as the coronavirus pandemic saps energy demand and oil prices tumble. |
| Bear-Market Bounce Breaks Despite “Global Money-Printing Orgy”Bear-Market Bounce Breaks Despite “Global Money-Printing Orgy” As stocks soared overnight and into the open this morning, pundits quickly appeared to proclaim the bear is dead and a new bull market had begun (as The Nasdaq completed a 50% retracement of the Feb-April drop)… |
| S&P Futures Crater 40 Points In One Tick On Huge For Sell Closing ImbalanceS&P Futures Crater 40 Points In One Tick On Huge For Sell Closing Imbalance It’s not just skyward that stocks can gap at 350pm when, 10 minutes before the close, the market on close imbalance is revealed. Regular readers recall two weeks ago, when on Thursday March 26 amid the furious pension frontrunning frenzy, Eminis soared 40 points in one tick when it was revealed that there was a $7BN market on close imbalance. |
| Online Lender Suspends Redemptions, Shuts Down Amid Flood Of Defaults, Unemployment SurgeOnline Lender Suspends Redemptions, Shuts Down Amid Flood Of Defaults, Unemployment Surge Over the weekend we explained just why there has been such an unprecedented scramble to use up bank revolvers over the past month, which according to JPM have seen drawdowns of roughly $300 billion so far in 2020. |
| NY, NJ Report Largest Single-Day Jump In Deaths, White House In Talks To Add $250BN To Small Business Bailout: Live UpdatesNY, NJ Report Largest Single-Day Jump In Deaths, White House In Talks To Add $250BN To Small Business Bailout: Live Updates Summary: Russia reports another concerning jump in cases Downing Street offers update on Johnson’s condition Abe kicks off Japan’s 1-month state of emergency Spain reports jump in deaths following drop over the weekend Wuhan lifts lockdown US death toll tops 11k Italy reports another deceleration in cases + deaths Spanish deaths tick higher UK reports deadliest day yet New York State reports biggest one-day jump in deaths with 731 France reports massive jump in deaths breaking above 10k; case total breaks above 100k New Jersey also reports highest fatality numbers Italy reports lowest jump in cases in a month ICU admissions, intubations down significantly in New York US cases accelerate faster than Europe’s Turkey delivers COVID-19 update Wuhan residents crowd train platforms as they’re finally allowed to leave after 10+ weeks De Blasio says ventilator shortage is easing Israel imposes Passover lockdown, Irish asked not to visit holiday homes for Easter 12 NYPD officers have died of COVID-19 Trump admin officials jawbone market higher Peterson poll shows 73% say COVID-19 has hit them in the pocketbook India closes hospitals after cases confirmed China reports no daily deaths for first time German health ministry unveils app to help track COVID-19 patients France prepares to ban jogging as lockdown ti … |
| Covid is pushing world economy to the brink. Is India immune?Covid is pushing world economy to the brink. Is India immune? India is in a relatively good position to withstand the hurricane about to strike defaulting and other EMs. |
| Garg does the math to save Covid-hit IndiaGarg does the math to save Covid-hit IndiaGovt may need to borrow about Rs 4-5 lakh cr more, former finance secretary Subhash Chandra Garg said. |
| Virus throws a wrench into divestment plansVirus throws a wrench into divestment plans India has put disinvestment plans ” both strategic and non-strategic ” on the back-burner. |
| February 2020 Headline Consumer Credit Year-over-Year Growth Rate Well Above ExpectationsWritten by Steven Hansen The headlines say consumer credit rate of annual growth increased relative to last month – and the growth was well above expectations. Our analysis of the unadjusted data shows annual growth marginally increased relative to last month. As this is February data, it does not include any impact due to the coronavirus.
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| Grocery prices are rising as eat-at-home demand soars during the coronavirus pandemicRetailers and food manufacturers are reducing the number of promotions even as customers snap up even more groceries amid the COVID-19 outbreak |
| Vodka, saunas and lockdown resistance: These countries are taking a different approach to the coronavirus pandemicThe majority of countries around the world have enforced strict lockdown measures in a bid to slow the spread of coronavirus but some have taken different paths in the face of the pandemic. |
| The CEO who built Cisco into a powerhouse has a sobering coronavirus diagnosis: At least nine months of economic painThe legendary tech executive-turned-venture capitalist predicts the health and economic crisis will take three to five quarters to run its course, and any economic uptick won’t occur until at least late fall. A full recovery would likely happen until early 2021, Chambers warned. |
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