Written by Gary
12:00 EST: COVID-19 is just the beginning, get ready for a bigger disruption(SPY +4.6%). Dead cat bounce about finished. COVID-19 is just the beginning, get ready for a larger disruption.
Here is the current market situation from CNN Money | |
 | North and South American markets are mixed today. The S&P 500 is up 4.25% while the Bovespa gains 3.09%. The IPC is off 6.12%. |
What Is Moving the Markets
| Here are the headlines moving the markets. | |
| Senate weighs emergency coronavirus pandemic funds; Trump seeks $850 billion moreThe U.S. Senate on Tuesday prepared to weigh a multibillion-dollar emergency spending bill passed by the House of Representatives offering economic relief from the coronavirus pandemic as the Trump administration pressed for $850 billion more. |
| ‘Single biggest shock’: Aviation battles coronavirus cash crunchBoeing and other U.S. aviation companies are seeking billions of dollars in aid as they battle to survive a plunge in demand caused by the coronavirus pandemic, while Airbus is pausing production at two sites to bolster health and safety measures. |
| European airlines plead for rescue package as coronavirus crisis intensifiesEuropean airlines on Tuesday called on governments to draw up a package of measures including deferring taxes to rescue the struggling industry as the crisis caused by the coronavirus pandemic deepens. |
| Factbox: Airlines count mounting costs of the coronavirus shockAirlines across the globe are feeling the pain as travel demand withers because of the coronavirus outbreak. Several have scrapped flights and ditched financial forecasts. |
| Stocks shaky after worst Wall Street crash since 1987World share markets and oil prices struggled on Tuesday after coronavirus panic caused Wall Street’s worst one-day rout since the Black Monday crash of 1987. |
| ‘D’ word rears head as coronavirus-hit markets brace for recessionThe coronavirus shockwaves rippling through U.S. stocks are forcing investors to contemplate outcomes more dire than a recession, including several quarters of declining economic activity, a credit crisis or even a depression. |
| Wall Street set for slight bounce after ‘Black Monday’ carnageWall Street’s main indexes looked set for a bounce on Tuesday, a day after their biggest drop since the 1987 crash, as efforts to contain the rapidly-spreading coronavirus upended parts of the economy and dampened business sentiment. |
| Southwest suspends beverage, snack service on short flights(This March 16 story corrects spelling error in headline and first paragraph) |
| Uber suspends pooled rides in U.S., Canada to limit coronavirus spreadUber Technologies Inc on Tuesday began suspending shared rides on its ride-hailing platform in the United States and Canada to limit the spread of the coronavirus. |
| Online Searches For “Unemployment Benefits” Soar After Virus Crashes Gig-EconomyOnline Searches For “Unemployment Benefits” Soar After Virus Crashes Gig-Economy It was only Monday when we reported New York’s unemployment website crashed as tens of thousands of people out of work tried to file a claim all at once. Last week, we warned that the gig-economy and service industry was expected to implode as a “coronavirus winter” unfolded across America.  The CDC has just banned gatherings over 50 people, which means stores, clubs, restaurants, bars, and hotels are voluntarily shuttering indefinitely as the economy grinds to a halt. About 55 million folks, or about 44% of all US workers, aged 18-64, are considered low-wage and low-skilled, have insurmountable debts (with limited savings), including auto, student, and credit card debts, work in the gig-economy and services. These folks are the most vulnerable and are getting axed by employers. Cities across the country that were once vibrant with economic activity have now transformed into |
| Nomura: ‘Quad Witch’ Friday Could Trigger “Un-Sticking” Of Insanely High VolatilityNomura: ‘Quad Witch’ Friday Could Trigger “Un-Sticking” Of Insanely High Volatility It’s ‘quad witch’ week, which historically has meant a collapse in vol and surge in stocks – no matter what the news. But, this week (and last) has been different, to say the least. |
| The Lehman Playbook Is Here: Fed Announces Bailout Of Commercial Paper Market – Here’s The Bad NewsThe Lehman Playbook Is Here: Fed Announces Bailout Of Commercial Paper Market – Here’s The Bad News It was supposed to be announced late on Sunday (recall “Fed Expected To Announce CP Bailout Facility Within Hours Or Risk Money Market Panic”), but instead Powell hoped that the bazooka of QE/ZIRP/FX swaps would be sufficient to ease the funding panic. It wasn’t, and instead, with a 2-day delay which forced countless companies facing a funding shortage to scramble for liquidity and draw down on their revolver facilities, moments ago the Fed announced that, just as we reported earlier, it will establish a Commercial Paper Funding Facility (CPFF) – the same facility that was unveiled during the last financial crisis – “to support the flow of credit to households and businesses.” As the Fed explains…
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| Fed Again Announces Extra $500BN Repo To Stabilize Funding MarketsFed Again Announces Extra $500BN Repo To Stabilize Funding Markets Earlier this morning, when discussing the latest Fed repo injections, which at $189BN between overnight and term repos, seemed insufficient to ease the stress in the repo market where GC repo jumped by 40bps to 60bps this morning… |
| Covid-19 is just the beginning, get ready for a bigger disruptionCovid-19 is just the beginning, get ready for a bigger disruptionThe Covid-19 pandemic reflects a systemic crisis similar to the seminal crashes of the 20th century. |
| How India plans to use the crude oil rout to its advantageHow India plans to use the crude oil rout to its advantageGlobal oil prices have fallen around 40% in March as the impact of coronavirus pandemic has destroyed demand. |
| Can Vodafone Idea really survive in India?Can Vodafone Idea really survive in India?Vodafone Idea may still struggle to sustain its business in the long term given its weak cash flows. |
| February 2020 Headline Industrial Production ImprovedWritten by Steven Hansen The headlines say seasonally adjusted Industrial Production (IP) improved month-over-month – but no shows no growth year-over-year. Our analysis shows the three-month rolling average improved.
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| Therese Poletti’s Tech Tales: Tech supply chain is recovering from coronavirus, but beware a relapseThe tech supply chain has begun to recover from the effects of COVID-19 in China, but don’t expect an easy return to normal. |
| Economic Report: Federal Reserve launches crisis-era commercial paper funding facilityThe Federal Reserve acts to backstop a key source of short-term funding for big businesses on Tuesday, amid calls by investors for the U.S. central bank to unclog the commercial paper market. |
| Retire Better: As the coronavirus spreads, scammers find new ways to rip you offAdvice from the FBI and Secret Service to avoid getting burned |
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