The Federal Reserve unexpectedly cut interest rates on Sunday for the second time in less than two weeks, an emergency move to help shore up the U.S. economy as a coronavirus pandemic spreads worldwide.
The U.S. Federal Reserve and its global counterparts moved aggressively with sweeping emergency rate cuts and offers of cheap dollars in a bid to combat the coronavirus pandemic that has roiled markets and paralyzed large parts of the world economy.
Airlines around the world said they would make more drastic cuts to their flying schedules, shed jobs and seek government aid after countries further tightened border restrictions due to the fast spreading coronavirus.
An historic shift into reverse gear for the Chinese economy could be one of the next consequences flowing from the spread of the novel coronavirus. That prospect threw Asian stock markets into reverse on Monday, despite economic stimulus measures in the U.S.The U.S. Federal Reserve, on Sunday (Monday morning in Asia) announced a full percentage point cut in its benchmark interest rate, reducing it to close to zero. The Fed also promised to inject liquidity into the economic system by buying at least $500 billion of Treasury securities and at least $200 billion of mortgage-backed securities. The Hong Kong Monetary …read more […]
(Bloomberg) — Treasuries surged after the Federal Reserve slashed interest rates to near zero, leading an effort by global central banks to provide liquidity for stressed markets. Global bonds rallied.Just hours after the Fed’s second emergency rate-cut this month, the Bank of Japan announced plans to buy more corporate bonds and commercial paper, while the Reserve Bank of Australia said it stands ready to buy government securities. Still, the premium to borrow dollars in some cross-currency markets continued to rise on Monday.The efforts, coming after a statement on Sunday by major central banks, underscored how the coronavirus pandemic is leading …read more […]
Nike Inc, Lululemon Athletica Inc and Under Armour Inc on Sunday said they would close stores in the United States and other markets, joining a growing list of major retailers moving to help limit the spread of the coronavirus.
Stock markets and the dollar were roiled on Monday after the Federal Reserve slashed interest rates in an emergency move and its major peers offered cheap U.S. dollars to ease a ruinous logjam in global lending markets.
The Federal Reserve cut interest rates on Sunday for the second time in less than two weeks, an emergency move to help shore up the U.S. economy as a coronavirus pandemic spreads worldwide.
(Bloomberg) — Emerging-market currencies face further sell-downs of up to 30% if the spreading coronavirus outbreak causes U.S. stocks to slide as much as they did in the global financial crisis, an analysis by Bloomberg shows.The dollar may strengthen a further 30% against the Russian ruble and 23% versus the Chilean peso, according to the study that examines moves in developing-nation currencies to significant sell-downs in S&P 500 Index, and scales those to a 50% loss. In contrast, the U.S. currency is likely to gain only 1% against the Chinese yuan.The analysis shows currencies from countries with current-account deficits and …read more […]
Spot gold was up 0.9% at $1,543.60 per ounce by 0248 GMT, having risen as much as 2.8% earlier. U.S. gold futures rose 1.8% to $1,544.20 per ounce. The Fed slashed rates back to near zero, restarted bond buying and joined with other central banks to help put a floor under a rapidly disintegrating global economy amid the escalating coronavirus pandemic. …read more […]
A massive rollout of easing measures by the Federal Reserve served to deepen some investors’ anxiety over how effectively policymakers will be able to mitigate the economic damage from a spreading coronavirus pandemic.
Mar.15 — Julia Wang, Greater China economist at HSBC Holdings Plc, discusses the state of the world’s second-largest economy and policies. China’s economic activity contracted more than expected in the first two months of 2020 amid the coronavirus outbreak. Industrial output fell 13.5% in January and February from a year earlier, retail sales fell 20.5% in the period, and the unemployment rate jumped to 6.2%, the highest on record. Wang speaks with Yvonne Man and David Ingles on “Bloomberg Markets: Asia.” …read more […]
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