Mar 20, 2020

It's is Friday. On the weekends, there will be some big actions from the FED. So whatever you're doing, check out the latest updates for today and decide your trading strategies quickly. It's very risky to keep your orders over a coming eventful weekends.

Not enough cash

Nearly half of China's listed consumer companies don't have enough cash to survive for another 6 months. This underscores the urgent task that Beijing needs to take to restart the economy and make shoppers spend again. Restaurants are in the worst situation because the coronavirus outbreak has left consumers home. As a result, 60% of restaurants cannot afford labor and space rental costs, of which 50 are listed companies. 

Of the jewelry and apparel companies, nearly half have no cash to survive for 6 months unless demand increases sharply. However, demand doesn't seem to recover quickly as consumers are still hesitant to leave their homes after weeks the government warns of the dangers of public exposure. China is still wary of a second wave of infection, in part from people traveling from other affected areas back to the country.

Helping the market

Asian stocks are likely to rise slightly after the US-reversed trading session ended with a rise in the S&P 500, as investors appreciate policy actions that could prevent the decline. worst economic recession. The futures market increased in Australia and Hong Kong; while the Japanese market is closed on a holiday Friday. The Nasdaq Composite led the way in the US as traders hunted for bargain assets quickly grabbed technology stocks. Shares of Tesla Inc., Twitter Inc. and Netflix Inc. are up at least 5%. The dollar continued to strengthen because recent moves showed little sign of easing, while Treasury Bond yields fell. Crude oil rose the most in records when Middle Eastern producers began showing signs of tension, and Mr. Trump said he would take part in the oil price war at an appropriate time.

A help from SoftBank

SoftBank is seeking to raise billions of dollars so that its first Vision Fund can support investment companies that were hit by the coronavirus pandemic. How much support? 10 billion dollars. The company is negotiating with outside investors to provide $ 5 billion, which will then be combined with a $5 billion contribution from the Japanese conglomerate. To be sure, SoftBank may not be able to secure enough commitments from investors, in part because public asset funds in the Middle East have been shaken by a sharp drop in oil prices. 

The Vision Fund - which includes Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala Investment Company - is the largest contributor - spent $ 80.5 billion out of a total of $ 98.6 billion on 12/31. Vision Fund plans to reserve the remaining cash to pay coupons associated with Saudi investment and new capital to be used to support struggling companies, as well as to fund opportunities. Acquire smaller rivals. Some of the fund's biggest investments have been affected, such as Uber and other food delivery services.