May 11 2020 0
The news on Monday are always the most important because it updates what happened on the weekends and what you should be preparing to do for this week. So check out the latest news for today and decide what your forex trading strategies would be.
About the outbreak
Viral infections in the United States have increased 1.8% from a day earlier when the number of deaths has reached 80,000. However, this increase is lower than the daily average of 2.1% in the past week. Vice President Mike Pence is quarantining himself from the White House after an aide was diagnosed with coronavirus infection on Friday. Meanwhile, the President of the Federal Reserve Bank, Neel Kashkari, said Americans should be prepared to receive even more heartbreaking news about unemployment in the context of the coronavirus epidemic and the nation. The association should consider providing additional support.
The UK has outlined a plan to restart activities in the economy after the quarantine, working from home. Johnson & Johnson plans to produce one billion vaccines next year and Regeneron Cosmetics Inc. said hundreds of thousands of antibody treatments could be available by the end of this summer. China blocked a city in the northeast after cases of virus infection increased. The coronavirus death toll in Indonesia has nearly reached the 1,000 mark, a day after the world's fourth most populous nation reported a record increase in new infections.
The market is back
Asian stocks are likely to have a tumultuous start on Monday as investors revaluate their valuations after the recent risky rise in appetite, especially when sentiment remains unstable when The cautious economy reopened. The fluctuations in the money market were mostly quiet at the beginning of the session and the S&P 500 futures contract slightly fell at the opening. Last Friday, the S&P 500 and Treasury Bond yields both rose, despite the biggest monthly job loss in the United States in more than 70 years. Investors have predicted this level of damage and think it will mark a low milestone during the economic downturn due to the pandemic.
Challenges for China
The People's Bank of China says its country is facing unprecedented economic challenges from the coronavirus pandemic and they will resort to "stronger" policies to cope with devastation. growth. In its quarterly monetary policy implementation report released on Sunday, the central bank said policy makers would pay more attention to economic growth and employment among many goals. The report emphasizes that prudent monetary policy will be more flexible and more appropriate - it will maintain liquidity at a reasonable level. The phrase "will avoid excess liquidity flooding the economy" was missing from the policy perspective. This phrase appeared in an earlier report in the fourth quarter of 2019.
Severe deficit
In a report released Monday, Deloitte Access Economics said Australia's budget deficit would blow away 7.2% of gross domestic product in this fiscal year and for the 12 months to June 2021 because sales dropped and spending skyrocketed to cope with the economic downturn caused by the virus. They say that when there are fewer employees and less income, the personal income tax will be more affected than the official forecast. Regarding the mid-year financial and economic outlook released in December, sales will fall 6% in 2019-20 and then 16% in 2020-21. Profits will also "significantly affect," which means that corporate taxes will drop sharply compared to official forecasts. The government and central bank will gather a monetary and financial package worth 16.4% of GDP to help households and companies overcome the crisis.
Finding the source
Leading experts in virology are trying to unravel a mystery: How a deadly coronavirus can jump from the wilderness of rural China to densely populated centers of population? And which gene mutation sequence has created a perfectly adapted pathogen to be able to infect in mass?
While vaccine research programs are currently underway in the United States, Europe and China, finding a vaccine to prevent the virus may not be ready for months and they may not yet be able to release it. Potential treatments. Meanwhile, in order to reduce the risk of deadly secondary outbreaks or the emergence of an entirely new strain, those who hunt for the origin of the disease need to rediscover the pathogen worldwide, which means returning to China - where it all started in 2019.
