Mar 18, 2020

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Economic depression?

Economists of Goldman Sachs and Morgan Stanley claim that the coronavirus have now caused global recession, in both width and depth. The virus has spread to Europe, the United States and even China - where the pandemic originated - who all experiencing hard impacts on the economy than originally anticipated. So how deep will it impact? Morgan Stanley's team of economists said: "A worldwide recession will be the first basis, with growth expected to fall to 0.9% this year. That of the S&P Global index is also expected to range from 1-1.5%. "

A bullish market

Asian stocks are likely to go up following the rise in US stocks as investors track Trump's efforts to compensate for the economic impact from the coronavirus. Treasury bonds dropped, pushing the yield on 10-year bonds to above 1%. At one point, 10 and 30-year notes rose more than 36 basis points - the biggest gain in a day since 1982. The futures market rose in Japan and Hong Kong after the S&P 500 6% increase. Again, crude oil decreased by 6.6%.

Next stop: India

India could become the next global hot spot for virus infections when experts warn that effective containment measures in other Asian countries cannot work in populous countries. second world. The country in South Asia, which has reported 137 cases of virus infection and 3 deaths, is trying to stop the spread by closing borders, testing travelers and tracking down people. positive test result. Yesterday, the Indian Medical Research Council (ICMR) announced it was increasing the nation's testing capacity to 8,000 samples per day from the current 500. Mr. Balram Bhargava - ICMR General Director said that there is "no evidence" showing the spread of virus in the community. However, some experts say this is not enough to stop the spread. Other measures such as widespread testing and social isolation may not be feasible in cities with high population densities and rickety medical infrastructure.

Meanwhile, in the United States, medical doctors will conduct an online examination and New York state will need more beds and ventilators. European leaders have agreed to close the border with foreigners. In Australia, the Prime Minister has tightened up to a limit by restricting house gatherings. Overall, the coronavirus has infected more than 183,000 people worldwide and killed more than 7,400 people.

A billion from Trump

The Trump administration is discussing a spending plan that could amount to $1.2 trillion - including payments of $1,000 or more for Americans within 2 weeks - to ease some of the economic impact. from coronavirus outbreaks. Treasury Secretary Steven Mnuchin signed a first set of checks worth $250 billion in late April and signed the second set of checks worth $500 billion if the country still had an emergency. 4 weeks later. Mr. Mnuchin said during the briefing at the White House: "Right now, Americans need cash and the President wants to give them cash. Now means in the next 2 weeks. And that amount is not small. " The Trump administration discussed the $850 billion support package, but it later exceeded $1.2 trillion. To date, more than $1.5 trillion in financial assistance worldwide has been committed or under review by the government. That funding ranges from guarantees for bank loans to tax delays and even cash payments.