Trump Threatened To Slap New Tariffs On China Over The Coronavirus Crisis

U.S. stock index futures slid on Friday after President Donald Trump threatened to slap new tariffs on China over the coronavirus crisis, while Apple and Amazon became the latest companies to warn of more pain in the future.

Trump said late on Thursday his trade deal with China was now of secondary importance to the pandemic, as his administration crafted retaliatory measures over the outbreak.

The threat pulled attention back to the trade war between the world’s two largest economies that has kept global financial markets on tenterhooks for nearly two years.

Also weighing on sentiment was a 2.6% fall in Apple Inc AAPL.O shares in premarket trading after the company said it was impossible to forecast overall results for the current quarter, even as it reported upbeat quarterly results.



Amazon.com Inc shares AMZN.O tumbled 5% after the company said it could post its first quarterly loss in five years as it was spending at least $4 billion in response to the coronavirus pandemic.

Wall Street fell on Thursday as grim economic data and mixed earnings prompted investors to take profits at the end of the S&P 500’s best month in 33 years, a remarkable run driven by hopes of reopening the economy from crushing virus-induced restrictions.


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Markets will also keep a close eye on the ISM’s purchasing managers index (PMI) data, due at 10:00 a.m. ET.

The report comes a day after data showed U.S. initial jobless claims totalled 3.84 million for the week ended April 25 and personal spending tumbled 7.5% in March, the biggest decline on record.

Meanwhile, oil majors Chevron Corp CVX.N and Exxon Mobil Corp XOM.N are expected to post their first-quarter earnings later in the day.




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Making Sense Of A Stock Market Just 16% Off Its High While A Pandemic Costs 26 Million Jobs

Why isn’t the stock market much lower?

This question is occurring to plenty of observers right now, given the apparent contrast between economic realities and equity performance.

A pandemic-driven economic catastrophe of unprecedented speed has cost more than 26 million jobs, which to many seems unreflected in an S&P 500 index that’s up 29% from its low a month ago, down a mere 16% from a record high and resting near levels from late summer 2019 – a time when we were at full employment and record corporate profitability.



Even some on Wall Street are remarking on this perceived Wall Street-Main Street disconnect.

Cantor Fitzgerald strategist Peter Cecchini last week argued, “The equity market just isn’t getting the joke. Three factors make this rally appear somewhat ridiculous because the likely extent of the slowdown will be severe relative to historical experience for three reasons: 1) a pandemic whose duration is unknowable, 2) an oil shock whose impacts on earnings will be deflationary, and 3) an already fragile economy as indicated by an inverted yield curve and already contracting loan volumes.”

Credit Suisse’s Jonathan Golub notes the S&P 500 has been at the current 2800 level a couple of times in recent years, comparing the fundamental context for each visit. When the S&P traded here in both January 2018 and March 2019, forecast earnings over the next year were appreciably higher (meaning stocks now look more expensive) and credit spreads are much wider now (suggesting a riskier environment).

Only when comparing valuations on the profit projections two years out does today’s market look roughly in line with the prior stops at 2800. And it’s probably fair to assume that today’s consensus forecast calling for 2021 earnings growth well above 2019 levels is unadjusted for the full realities of the economic shock underway.

Certainly, the trillions in Federal reserve asset buying has helped enable the rally in risk assets that has lifted equities off their lows and bolstered valuations.

Market internals tell the true story
Yet the way the S&P has returned to 2800 doesn’t truly suggest that the market has rushed to anticipate a roaring economic revival.

If stocks were handicapping such a quick resurgence in the economy, one would expect “early cycle” groups such as autos, banks, consumer durable goods and retail to lead the market. This is the opposite of what’s going on.

Binky Chadha of Deutsche Bank notes that the firm’s early-cycle long-short basket of stocks “after falling massively during the sell-off has continued to fall during the rally.”

Similarly, the Direxion MSCI Cyclicals Over Defensives ETF, a small fund that goes long economically sensitive stocks and short non-cyclical names, has had a fairly feeble bounce after a 38-percent collapse, badly trailing the S&P on the rebound.

Big, steady secular-growth stocks in technology, healthcare and consumer staples are holding things together at the big-cap index level against a steady undertow from shares of cyclical businesses with flagging demand and shakier balance sheets.

This is visible in the gulf between the performance of classic “recession-recovery” plays such as General Motors, flooring-products maker Mohawk Industries and consumer lender Capital One Financial and secular-growth or counter-cyclical names like Amazon, Abbot Laboratories and Campbell Soup.

Amazon exemplifies another dominant trend, the premium being placed by investors on the acclaimed winners of an even more winner-take-all economy that might follow this downturn. Amazon’s $1.2 trillion market value, in fact, now accounts for more than 40% of the entire value of the S&P 500 consumer-discretionary sector.

Of course, just because the market is leaning on sturdy growth businesses rather than outright positioning for a better economy doesn’t mean this theme can carry the market indefinitely higher from here.

Market stalling
The S&P, in fact, has stalled over the past two weeks, chopping sideways just below the rebound-rally highs, as some growth stocks take a breather and short-term overbought conditions are worked off.

It would not be surprising for the indexes to continue digesting the move, assimilating the rush of corporate earnings in coming weeks, with some observers looking for a potential pullback of a few percent from here simply as a matter of technical market positioning.



And at some point, the extreme reliance on the mega-cap growth leaders can go too far. The five largest stocks already make up more than 20% of the S&P, pushing record concentration at the top.

Flows into the ETFS that track the Nasdaq 100, technology, healthcare and utilities have reached extremes, a sign they are getting a bit overheated and are prone to backing off.

At the same time, the market will almost certainly start to anticipate the trough in economic activity well before it seems obvious on Main Street that things are getting better. That would be visible in a rotation out of the crowded stable-growth names and into those distressed, struggling cyclical consumer, financial and industrial groups.

Historically, the stock market has some of its best returns when conditions are shifting from awful to less bad. The recent rally in energy stocks in the face of record-low washout prices in crude oil is an illustration of that.

As Strategas Group technical strategist Chris Verrone notes, “It’s difficult to get worse than worst ever,” and many gauges are, like oil prices, indeed at or near their worst readings on record: unemployment claims, Europe manufacturing indexes, Citigroup Economic Surprise Index.


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Things might soon line up for investors to start making a more aggressive bet the worst will pass before long and the real economy can start the healing process. And perhaps that bet will prove premature for a while once its laid.

But that doesn’t mean that right now Wall Street has already given the economy credit for recovering from an ordeal whose pain and duration are not yet known.




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Euro Zone Business Activity Crashes To ‘Shocking’ Lows On Coronavirus Pandemic

Euro zone business activity hit another record low during April in another sign that the coronavirus pandemic is causing severe economic damage across the region.

The IHS Markit Purchasing Managers’ Index, which measures both the services industry and manufacturing, dropped to 13.5 in April, according to preliminary data. In March, the same index had already recorded its biggest ever single monthly drop to 29.7. A contraction in PMI figures — a figure below 50 — indicates a likely fall in economic growth overall.

Earlier in the session, Germany’s flash index came in at 17.1, a record low, versus a figure of 35.0 the month before. This was worse than analysts had been expecting with Phil Smith, principal economist at IHS Markit, saying it “paints a shocking picture of the pandemic’s impact on businesses.”




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The Coronavirus Crisis Could Pave The Way To Universal Basic Income


◊ Universal Basic Income ◊

The IMF describes universal basic income as an income support mechanism.

The coronavirus crisis has revitalized calls for a universal basic income.

The Covid-19 outbreak has meant countries across the globe have effectively had to shut down, with many governments imposing draconian measures on the lives of billions of people.

The social, educational and economic ramifications of the confinement measures, which vary in their application worldwide but broadly include social distancing, school closures and bans on public gatherings, are expected to have a profoundly negative impact.

To be sure, the International Monetary Fund now expects the global economy in 2020 to suffer its worst financial crisis since the Great Depression.

The dramatic downgrade to this year’s growth expectations has amplified concern about those most vulnerable to an economic slump. In his Easter letter over the weekend, Pope Francis said: “This may be the time to consider a universal basic wage.”



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He argued it would “ensure and concretely achieve the ideal, at once so human and so Christian, of no worker without rights.”

As of Thursday, more than 2 million people had contracted Covid-19 worldwide, with 137,078 deaths, according to data compiled by Johns Hopkins University.

‘We have got to protect everyone’
Universal basic income is not a new idea. But it has gained more traction of late, more recently through the likes of U.S. presidential candidate Andrew Yang, who based his platform on the policy.

The IMF describes universal basic income as an income support mechanism, in which regular cash payments are intended to reach all (or a very large) portion of the population with no (or minimal) conditions.

Guy Standing, a research professor in development studies at SOAS, University of London, told CNBC via telephone that there was no prospect of a global economic revival without a universal basic income.

Standing, who has been an advocate for a universal basic income for more than three decades, said he believed the coronavirus crisis would be “the trigger” for a basic wage.

“It’s almost a no-brainer,” he said. “We are going to have some sort of basic income system sooner or later, but I think getting the establishments of many countries to do it is like pulling the proverbial tooth. There’s a big institutional resistance to it because of the implications of moving in this direction.”



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Standing urged world leaders and policymakers to avoid repeating the same mistakes that were made in the aftermath of the 2008 global financial crisis, saying another “toxic combination” of austerity and quantitative easing would simply stoke up another crisis.

“Going back and doing what they did after 2008 would be a disaster.”

Some governments, including the U.K., Austria and Denmark, have introduced wage subsidies in an effort to protect households from an expected economic downturn. They are intended to help protect jobs and cover the salaries of millions of people.

Standing dismissed such an approach as “regressive” and “inefficient,” arguing wage subsidies of this nature would only ever result in a large number of vulnerable people being excluded from the system. “It’s atrocious economics.”

“So, for me, all of the arguments are tilting us toward saying: ‘We’ve got to protect everybody. We are all vulnerable.’”

‘A level unifier’
Earlier this month, Spain’s Minister for Economic Affairs Nadia Calvino told Spanish broadcaster La Sexta that the euro zone’s fourth-largest economy would roll out a universal basic income “as soon as possible.”

Calvino said the government’s wish was to make a nationwide basic wage a permanent instrument that supports citizens “forever.”

If the policy is implemented successfully over the coming weeks, it would make Spain the first country in Europe to introduce a universal basic income on a long-term basis.

Cailin Birch, global economist at the Economist Intelligence Unit, told CNBC via telephone that Spain’s decision to roll out a universal basic income could pave the way for other countries to follow suit.

“In the U.S., they’ve actually already arrived at the policy — albeit through the back door rather than the front door,” Birch said, referring to the federal government’s direct payments plan.

The first wave of stimulus relief checks were deposited into some Americans’ bank accounts over the weekend, according to the IRS. Millions more expect to receive theirs in the coming weeks.

The checks are worth $1,200 for individuals with adjusted gross income below $75,000 and $2,400 for couples earning below $150,000.

It comes as part of the $2.2 trillion stimulus bill passed late last month. The direct payments are designed to help mitigate the financial strain caused by Covid-19.

“If anything, it makes the case for the need to have some kind of level unifier so that households can avoid financial ruin,” Birch said.

She warned one-off payments would be an “imperfect example” for basic income in the world’s largest economy, given that households would not be able to plan on receiving a second payment and because people are typically hesitant to spend money in the wake of an economic downturn.

There’s a “big divide” between the U.S. and Europe when it comes to their appetite for a universal basic wage, Birch said, suggesting Europe was generally seen to have “more familiarity and comfort with a left-leaning view.”



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Coronavirus: Australian Scientists Find Drug That ‘Completely Stops’ COVID-19 From Replicating

Tests showed the drug reduced levels of the virus by 99.8 per cent within 48 hours.

A drug prescribed for scabies has been shown to stops the coronavirus in its tracks and may help fight the infection, according to a study.

Ivermectin is used on the NHS and in the US for parasitic infections – but researchers in Australia believe it could be useful against COVID-19. Tests showed the drug reduced levels of the virus by 99.8 per cent within 48 hours. It had been completely eliminated after three days.

It’s believed the drug works by paralysing the SARS-CoV-2 virus and ‘overwhelming its nervous system’, preventing it from replicating.

Scientists at the Royal Melbourne Hospital believe ivermectin may in turn reduce the severity of the life-threatening disease. They are now urging for ivermectin to be trialled on coronavirus patients, as experts continue the race against time to find a cure.

Ivermectin was discovered in the 1970s and has fast become an essential medicine for a vast number of parasitic infections, such as head lice and scabies.

It’s branded as Stromectol, an oral tablet for scabies, or Soolantra, a skin cream for rosacea. It’s on the World Health Organization‘s List of Essential Medicines, the safest and most effective medicines needed in a health system.

In recent years, researchers have shown ivermectin has anti-viral activity against a broad range of viruses.

Most of this research has only been ‘in vitro’ – cells in the laboratory – which has prompted calls for human trials. That’s based on the fact that SARS, a coronavirus closely related to the new one, has a weak link in its DNA which the team said could be a potential target for ivermectin.

Cells were infected with SARS-CoV-2, the scientific name designated to the novel coronavirus, for two hours. Then ivermectin was injected. After 24 hours, there was a 93 per cent reduction of virus DNA in the cells compared to cells which were not treated with ivermectin.

Results showed ‘the loss of essentially all viral material by 48 hours’, Dr Leon Caly and colleagues wrote in their paper.

They add: ‘These results demonstrate that ivermectin has antiviral action against the SARS-CoV-2 clinical isolate in vitro, with a single dose able to control viral replication within 24-48 h in our system.



‘Ultimately, development of an effective anti-viral for SARS-CoV-2, if given to patients early in infection, could help to limit the viral load, prevent severe disease progression and limit person-person transmission.

‘This brief report raises the possibility that ivermectin could be a useful antiviral to limit SARS-CoV-2.’

The team suggested that until a drug is proven to be beneficial against COVID-19 in a clinical setting – which has not happened yet – ‘all should be pursued as rapidly as possible’. They noted that ivermectin has already been proven to be safe for use – it is approved by the FDA and MHRA.

Dr Michael Head, a research fellow at University of Southampton with a speciality in scabies and other diseases, said ivermectin is one of the best treatments for scabies.

It works by paralysing the parasite and ‘overwhelming’ its nervous system.

How it works to fight off the coronavirus is not clear yet, but it likely inhibits the viruses replicating mechanism in some way. Dr Head said: ‘Ivermectin is a widely used medicine, often used to treat many infections such as scabies.

‘There is a huge amount of research ongoing looking at whether we can repurpose existing drugs as anti-virals to treat COVID-19 cases. This new interesting study show Ivermectin has shown some effectiveness against the novel coronavirus in the laboratory setting.


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‘However, there is a huge difference between laboratory studies, and safety and effectiveness in patients, and so we should be cautious about reading too much into these preliminary results.

‘It is likely most of the existing medicines being tested already will not end up being useful for treating patients against COVID-19.’

Remdesivir, chloroquine and favipiravir are just some of the drugs being investigated in a bid to find a cure to the killer coronavirus.





Trump Decides Against Quarantine for New York

“A lockdown is what they did in Wuhan, China, and we’re not in China,” Mr. Cuomo said on CNN Saturday evening.

President Trump late Saturday said he would not seek a quarantine on New York, New Jersey and parts of Connecticut after raising the idea earlier in the day and said his administration would instead issue a “strong travel advisory” for the area, as the nation’s largest city quickly becomes an epicenter of the coronavirus pandemic.

Mr. Trump said he had directed the Centers for Disease Control and Prevention to issue the travel advisory and that more details would be released later in the evening. He said he had made the decision in consultation with the governors of New York, New Jersey and Connecticut.

Later Saturday, the CDC issued a travel advisory urging residents of New York, New Jersey and Connecticut to “refrain from non-essential domestic travel” for 14 days, effective immediately. The advisory doesn’t apply to those in critical infrastructure industries, including truckers and health professionals.



The president’s assertion earlier in the day that he was considering imposing a quarantine on those states for a few weeks drew swift and harsh blowback from governors, who questioned why they hadn’t been consulted first and suggested they didn’t believe the move would be legal.

New York Gov. Andrew Cuomo had called the quarantine idea a “declaration of war on states” that would crash financial markets and results in legal challenges.

“A lockdown is what they did in Wuhan, China, and we’re not in China,” Mr. Cuomo said on CNN Saturday evening.

The president had indicated he didn’t plan to physically prevent people from leaving those states, telling reporters earlier in the day that it wouldn’t be necessary to bring in the military or the National Guard. The president’s advisers have told him that most people would listen to an order from the president not to leave the states, and that it wouldn’t be necessary to “bring the hammer” by physically blocking their exit, a person familiar with the discussions said.

A quarantine restricting people’s movement across state lines would have represented one of the toughest measures the federal government has taken yet to slow the spread of the coronavirus. Mr. Trump already has blocked flights from China and much of Europe and asked Americans to adhere to social-distancing recommendations, but the stay-home measures that affect people most deeply have been ordered by governors.

New York City alone has more than 23,000 cases, nearly a quarter of all the cases in the country. Overall, New York state leads the country in infections, with 52,318 confirmed cases and 728 deaths as of Saturday, Mr. Cuomo said during an afternoon briefing.

Mr. Cuomo and the Democratic governors of New Jersey and Connecticut, Phil Murphy and Ned Lamont, already have ordered all nonessential businesses in the state to close and called for residents to stay home. Essential services like hospitals, grocery stores and pharmacies remain open under the order, and residents still can go outside for exercise and to obtain groceries.

They each said their moves already represent aggressive action against the virus’s spread. “Until further notified we are going to keep doing exactly what we are doing,” said Mr. Murphy, whose state has 11,124 coronavirus cases as of Saturday afternoon and 140 deaths.

“I look forward to speaking to the President directly about his comments and any further enforcement actions, because confusion leads to panic,” Mr. Lamont said in a statement.

Mr. Trump’s idea also took federal transportation officials by surprise. Federal transportation agencies, airline officials and pilot unions that would have been an important component of a quarantine weren’t informed about Mr. Trump’s idea before the president revealed it to reporters Saturday, according to people tracking the issue.

Concerns have mounted in other parts of the country about people leaving the New York City area and possibly spreading coronavirus. Earlier this week, administration officials urged anyone leaving New York to self-isolate for 14 days.


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Florida Gov. Ron DeSantis issued an executive order on Monday directing travelers from New York, New Jersey and Connecticut to self-isolate for that period, and said violations of the order would amount to a criminal offense. Rhode Island Gov. Gina Raimondo on Thursday issued a similar order. Mr. Trump said on Saturday he had spoken to Mr. DeSantis.

“They’re having problems down in Florida. A lot of New Yorkers going down,” Mr. Trump said.

Mr. Cuomo said other states’ measures to keep New Yorkers out were “reactionary.” He said he would sue Rhode Island if it doesn’t stop enforcing travel restrictions on New Yorkers.

Legal experts differed on whether the federal government could restrict, en masse, the movements of New York City area residents.

Lawrence Gostin, a professor of global health law at Georgetown University, said the quarantine broached by Mr. Trump would be unconstitutional and unprecedented.

“The power to regulate interstate commerce, including the spread of infectious diseases, resides exclusively in Congress,” he said. “In this case, the president hasn’t even consulted Congress or the governor of New York. He’d be acting unilaterally in ways he has no power to do.”

Mr. Gostin said governors, like Mr. Cuomo, would have multiple ways to push back if Mr. Trump ordered a quarantine of their states. They could sue, and they could direct the state police and public-health authorities not to enforce the order.

“The Supreme Court has said expressly that the federal government has no power to direct a governor to execute the president’s orders,” Mr. Gostin said. “The president would have to call in the United States military to guard the border.”

Wendy Parmet, a public-health law professor at Northeastern University in Boston, said the executive branch has broad powers to protect the public health. Restrictions on interstate travel and commerce should, constitutionally, be put in place by the federal government, not individual states, she said.

“We’re not supposed to have Florida saying drop dead to New York,” she said. “States can’t set up borders. We have a Constitution.”

She said whether any plan to quarantine the tri-state area passed constitutional muster would depend on the details of how it was done, and would have to be grounded in science about the public health.

“The courts are deferential to public health powers in times of emergency,” she said.

Mr. Trump’s comments overshadowed his visit to Norfolk, where he sent the hospital ship, USNS Comfort, on its way to New York to help take pressure off the city’s health-care system. Standing in front of the vessel, Mr. Trump said it was “stocked to the brim with equipment and medicines and everything you can think of.”

“This great ship behind me is a 70,000-ton message of hope and solidarity to the people of New York,” he said. He reminded Americans that anyone leaving New York must self-isolate for 14 days.

The U.S. added more than 15,000 cases of the Covid-19 disease, pushing the total past 104,000 on Saturday, with a surge of cases in New York amid increased testing. There are now more than 2,000 deaths from the virus in the U.S., according to Johns Hopkins University.



In a sign that other states were coming under pressure, California Gov. Gavin Newsom said coronavirus patients admitted to intensive-care units had doubled to 410 on Saturday. Hospitalizations were up 38.6% from a day earlier, with more than 1,000 Covid-19 patients now in California hospitals.

“That’s a significant, sizable increase,” he said. “If trends continue on those lines, then we will begin to manifest conditions that are very familiar to people on the East Coast.”

Authorities also reported the death of a New York Police Department detective and an Illinois infant who had Covid-19, the disease caused by coronavirus.

The virus’s growth in the U.S. outstripped that of Italy and China, the countries with the second- and third-most infections, where confirmed cases stayed around 86,000 and 81,000, respectively, according to data compiled by Johns Hopkins.

As a result, the number of confirmed infections globally has more than doubled over the past week to more than 600,000. The death toll from the pathogen rose to more than 28,000 on Saturday, with roughly one-third of the fatalities in Italy, data from Johns Hopkins showed.

Italy’s death toll from the virus on Friday rose by 919 to 9,134, the highest daily tally on record. Total infections there rose to 86,498, a 7% increase from the previous day.





 

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Coronavirus Cases Pass 650,000 as Global Economic Fallout Grows

“It is now clear that we have entered a recession as bad or worse than in 2009,” Kristalina Georgieva, managing director of the International Monetary Fund, said Friday

The highest number of U.S. cases continues to be in the state of New York, where almost 45,000 people have been infected and 519 have died from the virus as of Friday, state officials said.

The U.S. added more than 15,000 cases of the Covid-19 disease, pushing the total past 104,000 on Saturday, with a surge of cases in New York amid increased testing. The growth outstripped that of Italy and China, the countries with the second- and third-most infections, where confirmed cases stayed around 86,000 and 81,000, respectively, according to data compiled by Johns Hopkins.

As a result, the number of confirmed infections globally has more than doubled over the past week to more than 650,000. The death toll from the pathogen rose to more than 28,000 on Saturday, with roughly one-third of the fatalities in Italy, data from Johns Hopkins showed.

Italy’s death toll from the virus on Friday rose by 919 to 9,134, the highest daily tally on record. Total infections there rose to 86,498, a 7% increase from the previous day.

Overlapping travel bans and lockdowns have hammered businesses and led to millions of job losses, punctuated by a spike in U.S. unemployment claims to more than three million this week and a warning of a deep recession this year in trade bellwether Singapore.

“It is now clear that we have entered a recession as bad or worse than in 2009,” Kristalina Georgieva, managing director of the International Monetary Fund, said Friday. Rising bankruptcies and layoffs could undermine any recovery and do long-lasting damage to the world economy, she said.

With the pneumonia-causing virus spreading across the U.S. and Europe, after it was first detected in central China three months ago, governments around the world have ramped up efforts to limit people’s movement and began imposing wide-ranging closures on businesses, restaurants and schools domestically in recent weeks.

Increasingly strict travel bans set up by large countries including the U.S. and China have put a dent in global commerce, complicating efforts to reignite growth.

France and Belgium on Friday extended their national lockdowns by two weeks, until mid-April. French Prime Minister Édouard Philippe said experts advising the government recommended the lockdown remain for at least six weeks. Russia on Friday suspended all passenger flights to and from the country.

The IMF warned that low-income countries will be hit particularly hard given a combination of a health crisis, sudden reversal of capital flows and in some cases a plunge in commodity prices. In Russia, where oil exports account for roughly one-third of government revenue, the ruble has fallen to its lowest level in four years. The IMF estimated that at least $2.5 trillion is needed to contain economic contraction for emerging markets.

The Chinese government is also wrestling with the economic blow from the SARS-like virus, first from a prolonged halt in domestic business activities and now from weaker consumer sentiment and shrinking export demand as the coronavirus engulfs Europe and the U.S.

On Friday, China’s top decision-making body said the government plans to boost spending by increasing its fiscal deficit this year, as well as speed up issuance of Treasury bonds and so-called local government special-purpose bonds to support funding of infrastructure projects, as part of the stimulus measures to curtail economic impact from the pandemic.



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“The fiscal policy needs to be more proactive, and the prudent monetary policy needs to be more flexible,” said a statement from Friday’s meeting of the Politburo Standing Committee, chaired by President Xi Jinping. The government also called for a gradual reopening of shopping malls and markets to boost consumer spending.

China’s National Health Commission reported 54 new infections Friday, saying all were imported from abroad, bringing the total to 81,394.

Other countries continue to tighten rules on social distancing. Iran this week closed shopping centers and banned road travel between cities, pledging to fine and impound the cars of offenders. Iranian officials have warned the population to brace for a second wave of infections. Afghanistan on Friday expanded restrictions by announcing a three-week lockdown on its capital, Kabul. Lebanon, which extended its nationwide lockdown until April 12, on Friday imposed a nighttime curfew.

In Turkey, President Recep Tayyip Erdogan introduced further travel restrictions this weekend to combat the spread of the virus, which has infected 5,698 people and killed 92 in the country, according to a tally by national health authorities. Intercity bus and air traffic will be reduced to a minimum while all international flights will be suspended.

Hong Kong banned public gatherings of four or more people beginning midnight Sunday, with those violating the rules facing fines of more than $3,000 and six months in jail. Singapore said it would fine people who violate its social distancing rules up to about $7,000.

Australia said it would quarantine citizens returning from overseas in hotels for 14 days beginning midnight Saturday.







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Stimulus Check Calculator

Congress just passed a $2 trillion stimulus bill to address the growing economic crisis caused by the coronavirus pandemic.

Included are direct payments to many Americans. Individuals are eligible for up to $1,200 and couples would receive up to $2,400 — plus $500 per child.

But the payments would start phasing out for individuals with adjusted gross incomes of more than $75,000. The amount would then be reduced by $5 for every additional $100 of adjusted gross income, and those making more than $99,000 would not receive anything. The income thresholds are doubled for married couples.

Income would generally be based on one’s 2019 or 2018 tax returns.

The money will likely be deposited directly into individuals’ bank accounts — as long as they’ve already authorized the IRS to send their tax refund that way over the past two years. If not, the IRS would send out checks in the mail.

The White House has said they hope to begin distributing cash quickly, but it may take weeks before the bulk of payments go out.


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Coronavirus Shows Cash Is King, Even for Biggest U.S. Companies

The fast-spreading coronavirus has prompted even the biggest U.S. companies to cut their spending and bolster their balance sheets, proving once again how cash is king, especially in times of crisis.

After a decadelong U.S. economic expansion, not every company has entered this crisis with the same cash cushion. Apple Inc. ended the year with $247 billion in cash, securities and account receivables, enough to run its operations for more than a year even if it didn’t cut costs or sell a single iPhone. Discount retailer Dollar General Corp. had $240 million, enough for about four days, in the unlikely event it had to shut its doors and didn’t cut any costs.

Dollar General said its business model generates significant cash flow and has performed well in a variety of economic cycles, and the company can tap lines of credit and good access to the capital markets. Apple declined to comment.


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Technology companies generally operate with more cash on hand than retailers, which often have assets in unsold inventory. The median amount of cash and other readily available assets on an S&P 500 tech company’s books at year-end was enough to let it operate about 270 days in an extreme scenario without revenue or cost cutting, while the median was closer to 60 days for retailers, according to a Wall Street Journal analysis.

As companies prepare to close their books on a tumultuous first quarter, these measures can reveal how well-prepared they are for the sudden financial stress. Economists expect the crisis to cost the U.S. economy as much as $1.5 trillion in lost output over five years, including a decline in gross domestic product of 4% to 10% in the second quarter, a recent Journal survey of economists found.

“The investor mindset has shifted quickly to the balance sheet,” said Ron Graziano, an accounting and tax analyst at Credit Suisse. Sometimes factors that people don’t follow during a booming market suddenly become important. “The ones going into it with the bigger cushion are better positioned to survive.”

Delta Air Lines Inc. and Ford Motor Co. have stopped paying dividends. Boeing Co. has tapped out its credit lines, while General Electric Co. is cutting jobs. AT&T Inc.,  Intel Corp. INTC  and Chevron Corp. have shelved share buybacks.

In many cases, the crunch on corporate finances comes after years of cheap debt and easy credit that allowed companies to expand while building a $10 trillion mountain of debt. AT&T, following its 2018 takeover of Time Warner, had more than $150 billion in net debt at the end of 2019, though it has pledged to pay down its borrowings.

At the same time, many companies used spare cash to repurchase their own shares. In 2019, companies in the S&P 500 spent an estimated $729 billion on buybacks, second only to the record $806 billion spent in 2018, according to S&P Dow Jones Indices.

President Trump and Democratic lawmakers placed restrictions on share buybacks as part of the $2 trillion coronavirus stimulus package expected to pass Wednesday to help industries wounded by the pandemic.

Some of the companies that entered this crisis without big cash reserves sent much of the cash they produced from operations to shareholders, as dividends.

“Companies went into this situation with relatively limited cash balances,” said Torsten Slok, chief economist at Deutsche Bank Securities. “It is rather unfortunate they had lower cash balances and thereby became more vulnerable to this shock we have at the moment.”



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Economic Indicators: U.K. House Sales Set To Plunge 70% On Coronavirus Lockdown Impact

U.K. house sales are set to plunge by 70% in the next three months as the coronavirus outbreak batters the economy.

The slump in the second quarter, which is usually among the most active sales periods, will be followed by a further decline in the three months through September, according to a report on Thursday from real estate portal Zoopla. The hit to prices should feed through more slowly and will depend on the extent of the economic slowdown.

Covid-19 presents a major new challenge,” Richard Donnell, director of research and insight at Zoopla, said in an emailed statement. “The initial impact of external shocks is to reduce consumer confidence and put a brake on housing demand and the number of people moving home, which we can see in our latest figures.”

The partial lockdown of the country ordered by Prime Minister Boris Johnson has restricted people’s movements and closed all but essential businesses. That has made it nearly impossible for sellers to market homes, with potential buyers unable to view properties. And the government has warned that stricter rules could be imposed if necessary.

While the logistics of the lockdown impede deals, the economic fallout from the pandemic will dictate the impact on house prices, according to Zoopla. “The greater the economic shock and rise in unemployment, the greater the potential impact on house prices over the spring and into the summer months,” according to the report.

The U.K. economy will contract by at least 10% in the first half of the year, according to Bloomberg Economics’ estimates. Senior U.K. economist Dan Hanson said support provided by the Bank of England and the Treasury should prompt a turnaround in the second half of the year if the outbreak is contained by the summer.

The virus is already weighing on deals, with the number of homes placed under offer in the seven days through March 22 down 15% from the previous week, Zoopla data show.

Prior to the outbreak, the U.K. housing market was off to its best start in four years, with price growth of 1.6% in February, up from 1.2% a year earlier, according to Zoopla’s U.K. cities index.





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Global Stock Markets Mixed After Lawmakers Agree On Coronavirus Rescue Deal

Stocks turned mixed Wednesday after building on a rally from the previous session in anticipation of a coronavirus rescue deal by Congress. The White House and Senate reached an agreement overnight.

While the Dow was up 450 points and the S&P 500 rose 0.6%, the Nasdaq slipped into the red. The Dow soared more than 2,100 points Tuesday, or over 11%, notching its biggest one-day percentage gain since 1933 and its best point increase ever. The S&P 500 rallied 9.4% for its best day since October 2008.

White House and Senate leaders agreed to a massive $2 trillion coronavirus stimulus bill in the middle of the night.

“At last we have a deal,” Republican Senate Majority Leader Mitch McConnell said around 1:37 a.m. ET from the floor of the Senate. “In effect, this is a war-time level of investment into our nation.”

Former Federal Reserve Chairman Ben Bernanke also said Wednesday the U.S. economy will experience a quick rebound after a “very sharp” recession. “If there’s not too much damage done to the workforce, to the businesses during the shutdown period, however long that may be, then we could see a fairly quick rebound,” Bernanke told CNBC’s “Squawk Box.” Bernanke added the current situation is “much closer to a major snowstorm” than the Great Depression.

He also acknowledged current Fed Chairman Jerome Powell moved quickly to stem the economic blow from the outbreak. “I think the Fed has been extremely proactive, and Jay Powell and his team have been working really hard and gotten ahead of this and shown they can set up a whole bunch of diverse programs that will help us keep the economy functioning during this shutdown period.”

Still, some investors think the number of global coronavirus cases needs to improve before the market can form a bottom.

Spain experienced a record spike in coronavirus deaths, with 504 reported for Tuesday. Globally, more than 400,000 cases have been confirmed, according to data from Johns Hopkins University. In the U.S., more than 55,000 cases have been confirmed along with over 69,000 in Italy.

Peter Oppenheimer, chief global equity strategist at Goldman Sachs, said there are four “components” to the market stabilizing from here:

″(i) A sign that the policy intervention is sufficient to prevent severe second- and third-round economic shocks; (ii) A sign that the infection rate is reaching a peak; (iii) A sign that the economic downturn may be slowing; and (iv) Cheap valuations,” Oppenheimer wrote in a note to clients. “In reality, we believe it will be a combination of these, and in some cases there are already signs these are in place.”



Some investors believed the stock market was overdue for a big bounce, having priced in a worst-case scenario regarding the economic damage being done by coronavirus-related shutdowns. They believe a bounce could occur here even as coronavirus cases continue to surge because the market was so oversold.









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Airbnb Racks Up Hundreds Of Millions In Losses Due To Coronavirus

Airbnb Inc. wrestles with escalating losses due to the devastating impact of the coronavirus pandemic on its global business. The pandemic has thrown into disarray Airbnb’s plans to go public this year, and the company’s board and investors are divided over the best path forward, according to people familiar with the matter.

The San Francisco-based startup, which lets people list their properties for rent on its marketplace, has racked up hundreds of millions of dollars in losses this year, one of the people said. A spokesman for Airbnb said the company has “$4 billion in liquidity” and is “focused with our board on ways we can help our community weather this crisis.”

It is unlikely that the company will be able to attract investors at its 2017 valuation of $31 billion, when it last raised money, the people familiar with the matter said. The management is mulling how low it is willing to go to seek an injection of capital.

The Wall Street Journal reported last month that Airbnb internally was already valuing the company at less than $31 billion.



Airbnb, one of the nation’s biggest private companies, had planned to make its widely anticipated debut on the public markets this year via a direct listing, which wouldn’t involve raising any additional money.

The company is now considering instead raising cash using an initial public offering, and has held several meetings with its board this month to discuss its approach, the people familiar said. Morgan Stanley and Goldman Sachs Inc. have been appointed as dual-lead underwriters. But an IPO could go ahead only when the virus crisis has eased, stock markets stabilize, and the company’s finances recover to a stable footing, the people familiar said.

An Airbnb spokesman said it “should come as no surprise that in these extraordinary times, like virtually every company in the world, we are regularly consulting with our board to discuss our work.”

Airbnb—caught in the crosshairs of the all-out crisis the virus has created in the global travel industry—now faces evaporating revenues, as well as a backlash from the hosts who are the backbone of its business.

All its major markets are getting hammered. Bookings last week were down year-on-year around 95% in Asia, 75% in Europe—the company’s biggest market—and 50% in the U.S., according to one of the people close to the business. A report last week by Airbnb-analytics firm AirDNA also showed bookings tanking in big cities world-wide. This week’s numbers are much worse, the person said.

A spokesman for the company said the figures weren’t accurate but declined to provide other numbers.

Airbnb’s board had already raised concerns about the company sliding into the red, even before the pandemic upended its business, the Journal previously reported. Executives were grilled at a board meeting late last year on why overheads such as its head office and employee expenses had been allowed to balloon, outpacing even the then-rapid growth in revenue.


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Some board members are unhappy that Airbnb didn’t go public last year, when a soaring stock market put premium prices on even unprofitable startups, the people close to the company said. Employees are concerned the listing could now be delayed beyond the end of the year, meaning many valuable stock options will expire, becoming worthless.

One person close to Airbnb said management and the board are working in sync but that outside investors are agitated about the company’s troubles and its response to them.

Brian Chesky, Airbnb’s chief executive, is under intense pressure from employees to go public, after more than 10 years as a private company. He recently sought to reassure staff that a delay won’t happen. In a staff meeting held earlier this month and on a separate phone call with employees last week, he said the company plans to stay the course of going public this year, the people close to the business said.

Some investors are skeptical this will be possible, or question what price the stock might achieve.

The price at which Airbnb shares are trading has fallen sharply, according to people who specialize in the market for private company shares.

Before the pandemic hit, shares were trading privately at more than $140, valuing the company around $45 billion to $47 billion, according to Jared Carmel, managing partner at Manhattan Venture Partners, a secondary-market specialist. Now, he said, “we’re seeing shares tick back to close to $105.” That’s what Airbnb’s shares priced at in its last funding round in 2017, which valued the company at $31 billion, according to Dow Jones VentureSource data.













These Five Warning Signs Highlight Virus’s Rapid Economic Impact

The economic losses from the coronavirus have transitioned from hints of serious difficulties just a week ago to a devastating stoppage at countless U.S. restaurants, hotels, movie theaters, gyms and other service providers, with millions of employees now idled.

While still largely invisible in the mostly dated official economic data, the destruction is clear in private reports on hotels, dining establishments and theaters, many of which are now closed. The key questions center around how much more deterioration remains and how long it will last.

Here are five indicators that give a sense of the emerging crisis for the nation’s businesses.

1. Hotels

The outlook for the lodging industry has quickly gone from bad to worse. In the week ended March 14, occupancy of U.S. hotels plunged to 53%, meaning rooms were about half empty for the week, according to data tracker STR. A year ago, the rate was 70%. The slump occurred even as the industry reduced prices, with average daily rates falling 11% from a year earlier.

With the virus spreading to all 50 states, the falloff in travel is likely to be just the beginning. Seattle, which was an early epicenter of the virus in the U.S., experienced just 33% occupancy, while San Francisco’s was 39%. New York City, which typically is packed with tourists and business travelers, saw a decline to 49%.

Cities that depend on conventions were especially hard hit, said Jan Freitag, STR’s senior VP of lodging insights. “Group cancellations were felt across the markets.”

2. Retail Sales

Retail sales show a somewhat deceptive picture of true demand as they are holding up primarily because Americans are racing to discount and grocery stores to stockpile food, toilet paper and paper towels and other emergency goods. While discounters saw a surge in sales, purchases slumped at department stores that offer discretionary items like clothing, according to Johnson Redbook data.

Gains were led by “canned food, bottled water, pharmaceuticals, cleaning and household products as consumers stocked up in anticipation of staying at home for the next several weeks,” Bloomberg Intelligence analysts wrote.

It will get even worse for department stores. The largest mall owner, Simon Property Group (NYSE:SPG), announced it was temporarily closing all of its retail malls in the U.S.

3. Jobless Claims

With state and local governments ordering restaurants, movie theaters, bars, gyms and other gathering places to close, economists are bracing for a once-in-a-lifetime surge in jobless claims. Applications for unemployment benefits rose 70,000 last week to 281,000, Labor Department data showed Thursday.

But that’s about to spike much higher. Pantheon Macroeconomics Chief Economist Ian Shepherdson said his preliminary estimate is 2 million claims for next week. Goldman Sachs Group Inc (NYSE:GS). economists project 2.25 million.

4. Consumer Comfort

If you are looking for a bright spot, by one measure, consumers’ attitude seem to be holding up reasonably well. The Bloomberg Consumer Comfort Index improved last week to 63 from 62.7 a week earlier, the first gain since January. The caveat is the CCI is reported on a four-week rolling average basis.



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Confidence remains well above levels of the past recession during 2007 to 2009. But with layoffs starting to occur in large numbers and the stock market deteriorating rapidly, there is reason to expect sentiment will weaken. Improved household attitudes will be vital for spending when the U.S. emerges from the crisis.

5. Movie Theaters

Theaters in the U.S. and Canada brought in just under $50 million over the weekend starting March 13, researcher Comscore Inc. said Monday. That’s a 61% decline from a year earlier and the smallest weekend tally since at least 1998. The three-largest chains in the U.S. are all closed this week, and almost every new film release has been postponed or is being made available for at-home rental early.

Of course, the cinema isn’t alone within the arts and entertainment industry. Broadway is dark too, having been shut down by order of New York Governor Andrew Cuomo more than a week ago. And all major sports — remember this should have been a week for NCAA basketball’s March Madness tournament — have canceled games or suspended seasons indefinitely,












 

Coronavirus Deaths Top 10,000 Globally

The number of deaths from the novel coronavirus world-wide doubled in a week to more than 10,000 on Friday.

Deaths from the pneumonia-causing pathogen have more than quadrupled in the U.S. over the past week to 205, while confirmed infections in the country have surged to 14,250 from around 1,700 on March 13. The majority of U.S. cases are in three states: New York, Washington and California.



New York Gov. Andrew Cuomo took more significant steps Friday to contain the growing number of cases, ordering residents to stay indoors “to the greatest extent” and requiring all nonessential workforce employees to stay home. He said the measures will be enforced, with fines and mandatory closures for businesses that don’t comply.

“This is the most drastic action we can take,” Mr. Cuomo said. New York has 7,102 infections, thousands more than any other U.S. state.

In the largest lockdown in the U.S. to date, California Gov. Gavin Newsom ordered the state’s 40 million residents to shelter in their homes, except for essential activities. Mr. Newsom’s order followed similar measures implemented earlier this week in San Francisco and the Bay Area, where residents were ordered to stay in their homes for three weeks. The state has 1,030 confirmed infections.

The State Department advised U.S. citizens not to travel internationally and urged those currently overseas to return home immediately or remain abroad indefinitely.

As the number of reported infections grew across the U.S. this week, everyday life fundamentally changed as more state and local leaders moved to limit its further spread. Large gatherings were prohibited; school, work and worship moved online; and bars and restaurants shut down. On Friday, the Scripps National Spelling Bee postponed its 2020 championships, scheduled to take place in Maryland in late May.

As the economic disruption caused by the virus becomes more apparent, lawmakers in the nation’s capital were set to begin negotiations over a stimulus package, the first version of which proposes direct cash payments to many Americans as part of a larger plan also designed to help struggling businesses and health-care professionals. Treasury Secretary Steven Mnuchin said the U.S. will extend the individual tax filing deadline to July 15.

U.S. stocks were mixed Friday after the Federal Reserve on Thursday offered to temporarily provide billions of dollars at near-zero rates to central banks, easing market strains.

Globally, there were more than 247,000 confirmed cases of the disease known as Covid-19, according to data compiled by Johns Hopkins University, with two-thirds of the cases outside of mainland China, where the new respiratory virus was first identified in late 2019.



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Europe has become the epicenter of the coronavirus pandemic, with a relentless rise in new cases forcing border closures and nationwide quarantines and stretching health-care systems to their outer limits.

France, where cases grew to 10,891, is likely to extend its two-week lockdown, authorities said on Friday.

“It’s a race against the virus, and we are just at the beginning,” said French President Emmanuel Macron, who convened a defense council on Friday with his cabinet.









 

Stock Market Today: Technology Sector Leads A Turnaround

Stocks turned higher Thursday, erasing losses from earlier in the day as sharp gains in tech shares led to a turnaround. The Dow was up more than 400 points, or 2.1%. The S&P 500 was up 1.5%, while the Nasdaq outperformed with a 3.2% surge. Shares of Netflix and Facebook rose 7.6% and 5.8%, respectively. Amazon gained 4.1%.

Earlier in the session, the Dow was down 721 points, or more than 3%. The S&P 500 briefly fell more than 3% as well.

“This is a day trader’s market,” said Christian Fromhertz, CEO of Tribeca Trade Group. “That’s not my favorite type of trading, but the day-to-day swings and the overnight moves are pretty insane.”

Among the industries trading in positive territory Thursday morning was energy, with the S&P sector up more than 0.5%. Big oil producers like Diamondback Energy and Apache rose more than 8% each as futures contracts tied to the price of West Texas Intermediate crude rallied more than 15% to $23.47, on pace for its fourth-best day ever.







The moves followed yet another violent day on Wall Street on Wednesday. The Dow dropped 1,338.46 points, or 6.3%, on Wednesday and clinched its first close below 20,000 since February 2017. The Dow was down more than 2,300 points at the lows of the session. The S&P 500 dropped 5.2% to 2,398.10 and closed nearly 30% below a record set last month as both indexes sank further into bear markets.

Markets are clearly in a state of panic and forced liquidations – but risks remain skewed to the upside and this should become much more apparent once some of the solvency issues are addressed,” Adam Crisafulli, founder of Vital Knowledge, said in a note.

Wall Street has been on an unprecedented roller-coaster ride amid the coronavirus turmoil, with the S&P 500 swinging 4% or more in either direction for eight consecutive sessions.

An eye-watering spike in Treasury yields has also kept investors anxious. The 10-year Treasury rate hovered at 1.1% after jumping more than 50 basis points in two sessions as it rebounded from record lows.

Gregory Faranello, head of U.S. rates trading at AmeriVet Securities said swift reversal in yields comes amid strong dollar demand amid the coronavirus crisis.

“There’s a dollar strain on the system, globally,” said Faranello. “Whether it’s Asia, Brazil, emerging markets, Europe or here in the U.S., the dollar is in demand right now.”

“If you look at everything across the board, it’s all going down together. The one thing that’s going up that’s dollar denominated is the U.S. dollar,” he added.

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The dollar index, which tracks the greenback’s performance against a basket of other currencies, jumped to its highest level since January 2017 on Thursday. It last traded up 0.7% at 101.83 after breaking above 102.

More central bank stimulus

On Wednesday evening, the European Central Bank (ECB) announced a new Pandemic Emergency Purchase Program that will deploy €750 billion ($819 billion) to purchase securities to help support the European economy. The central bank said purchases will be conducted until the end of 2020 and include a variety of assets including government debt.

The ECB’s action follows similar initiatives by the Federal Reserve, its U.S. counterpart. The Fed announced earlier this month plans to pump an additional $1 trillion into the U.S. economy through asset purchases and cut the federal funds rate to zero. The Fed also said Wednesday night it will create a backstop for prime money market funds.

Those announcements came as the number of confirmed coronavirus cases around the world topped 200,000, according to Johns Hopkins University. In the U.S. alone, more than 9,400 cases have been confirmed along with over 100 deaths.







U.S. lawmakers appeared to inch closer to implementing fiscal stimulus measures. The Senate had enough votes to pass a bill expanding paid leave and unemployment benefits in response to the virus as part of what’s expected to be a whopping governmental response to avoid a downturn.

Senate Majority Leader Mitch McConnell said Wednesday he would vote for the plan despite what he called “real shortcomings.” With the urgent need to take action, “I do not believe we should let perfection be the enemy of something that will help even a subset of workers,” he said.






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New York Stock Exchange Move To Electronic Trading Because Of Coronavirus

The New York Stock Exchange said Wednesday it will temporarily close its historic trading floor and move fully to electronic trading after two people tested positive for coronavirus infection at screenings it had set up this week.



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All-electronic trading will begin on March 23 at the open, the exchange said. The facilities to be closed are the NYSE equities trading floor and NYSE American Options trading floor in New York, and NYSE Arca Options trading floor in San Francisco.

The closure was in part as a result of positive coronavirus tests of two people, Stacey Cunningham, President of the NYSE, told CNBC. The entrants were stopped at the medical screenings at the Big Board.

The stock market has closed at times over the years, such as during World War II and in the wake of 9/11, but this is the first time the physical trading floor of the Big Board has ever shut independently while electronic trading continues.

“We implemented a number a number of safety precautions over the past couple of weeks, and starting on Monday this week we started pre-emptive testing of employees and screening of anyone who came into the building,” Cunningham said on “Closing Bell.” “If that screening warranted additional testing, we tested people and they were sent home and not given access to the building. A couple of those test cases have come back positive.”

“While those people were not in the building this week and the building had been cleaned and addressed prior to start of trading on Monday, I think it’s reflective we’re seeing things evolve,” Cunningham added.

The NYSE is operated by the electronic trading group Intercontinental Exchange, which acquired it in 2012. The exchange moved into its location at 18 Broad St. in lower Manhattan in 1903.



Wall Street has been on an unprecedented volatile ride during the coronavirus crisis. Just this week, a market-wide circuit breaker was triggered twice by the NYSE due to the massive sell-off, resulting in brief trading halts.

On Wednesday, the Dow Jones Industrial Average closed below 20,000 for the first time since February 2017. The S&P 500 was now nearly 30% below a record set last month.

The exchange said in a release that it was implementing its business continuity plan and “trading and regulatory oversight of all NYSE-listed securities will continue without interruption.”





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Coronavirus Infections Pass 200,000 Globally, Death Toll Tops 8,000

The rapid increase in world-wide cases reflects, in part, how people in many countries were unwittingly transmitting the respiratory virus before governments grasped the scale of the problem.


There were more than 205,000 confirmed cases of the disease known as Covid-19 on Wednesday, with infections outside of mainland China—where the epidemic began—now above 124,000, according to data compiled by Johns Hopkins University.

Deaths globally have also more than doubled over the past two weeks to 8,248. In Europe, the death toll reached 3,415, overtaking China for the first time and cementing the continent’s position as the new epicenter of the pandemic.

Italy, the second worst-hit country after China, has seen infections top 31,500 and deaths reach 2,503. Scientists expect the number of fatalities in Italy to overtake those in China within days.

The U.S. plans to close its northern border with Canada to nonessential traffic, President Trump said. The president, who made the announcement on Twitter, said the decision was made by “mutual consent.”

A Canadian official said talks with the U.S. are aimed at targeting nonessential travel like tourism, while allowing trade and commerce to continue between the two countries. Canada on Monday banned most nonresidents from entering the country, although it made an exception for U.S. citizens.

U.S. stocks dropped sharply Wednesday, following declines in international markets. In a tweet, Mr. Trump said he would hold a news conference later in the day to announce “very important news from the FDA about coronavirus.”

The U.S. has more than 6,500 confirmed cases in all 50 states and Washington, D.C., including 115 deaths. Case numbers are expected to grow as testing capabilities expand. U.S. hospitals are already facing a shortage of masks, gowns and other equipment needed to care for patients.

States and local officials took more aggressive measures to promote social distancing in recent days, closing restaurants, bars and nonessential businesses. New York City Mayor Bill de Blasio said he is weighing whether to require residents to shelter in place, while New York Gov. Andrew Cuomo said he didn’t intend to impose such a quarantine. Meanwhile, officials in San Francisco and the Bay Area ordered residents to stay home for three weeks, and the city of Hoboken, N.J., imposed a self-isolation policy.


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Officials in Chicago, the biggest city within the three states that voted Tuesday, said election-day turnout was low as nervous voters stayed home. Democratic National Committee Chairman Tom Perez called for states with coming primaries and caucuses to use mail-in ballots and other alternatives, after Ohio’s abrupt cancellation of its primary caused confusion.

In an effort to cushion households and businesses amid this economic slowdown, the Trump administration on Tuesday backed a plan to send checks directly to Americans as part of a $1 trillion stimulus package. The Senate is expected to vote Wednesday on a second coronavirus response bill, focused on free virus testing and two weeks of paid emergency leave for people dealing with its effects.

Many economists say it is looking more likely that there will be a global recession. Deutsche Bank AG said gross domestic product could shrink 24% in the eurozone and 13% in the U.S. in the second quarter on an annual, seasonally adjusted basis—declines that would be the biggest in recorded history.





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Amazon Stops Receiving Nonessential Products From Sellers

Amazon is suspending sellers from sending nonessential products to its U.S. and U.K. warehouses until April 5 in the latest move to free up inventory space for much-needed supplies that are in shortage as a result of the coronavirus outbreak.

In a note sent to sellers Tuesday, Amazon said it is seeing increasing online shopping demand from consumers. As its household staples and medical supplies are running out of stock, it will prioritize certain categories in order to “quickly receive, restock, and ship these products to customers.”

Amazon defined five categories as essential products that can continue shipping, including Baby Product, Health & Household, Beauty & Personal Care, Grocery, Industrial & Scientific, Pet Supplies.

The move follows Amazon’s announcement it will hire 100,000 workers for its warehouses on Monday, as the Seattle-based giant is trying to meet growing online shopping need from people who stay home amid the coronavirus outbreak.

Third-party sellers account for over half of the sales on Amazon. Amazon has been courting sellers to use its own fulfillment system, enabling many of them with faster delivery without the risks of sitting on inventories.







It is especially popular for sellers who use a dropping shipping method, meaning sellers import products from manufacturers in countries including China and directly send them to an Amazon warehouse. Amazon earns fees from managing the storage and delivery process.

Sellers supplying products that are deemed nonessential could see their products run out of stock and they will be unable to restock as a result of the measure. Still, they can use other fulfillment methods to directly mail products to customers.

Amazon did not immediately replied to request for comment.



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Markets News: U.S. Travel Ban Stoked Renewed Worries About The Coronavirus’s Economic Toll


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S&P 500 futures were down 4%, suggesting U.S. shares could be set for another punishing session later Thursday, a day after the Dow Jones Industrial Average slid into a bear market. European indexes fell at the start of trading Thursday, with the pan-continental Stoxx Europe 600 shedding 5.4% and Italy’s FTSE MIB falling 5.8%.

Benchmarks in Australia, Hong Kong, India, Japan and South Korea fell to multiyear lows, crude-oil prices dropped and U.S. government bonds rallied.

On Wednesday night, President Trump issued a 30-day ban on most travel from Europe to the U.S., a new serious disruption to everyday activity. Mr. Trump said he would offer financial assistance to those affected by the coronavirus and that the pandemic isn’t a financial crisis.

Daryl Liew, head of portfolio management at REYL Singapore, said markets were reacting negatively to “drastic containment strategies,” such as those introduced by the U.S. and Italy, which are likely to hurt economic activity and business operations.

Italy has ordered all restaurants and bars, and most stores, to close as it races to contain the worst coronavirus outbreak outside China.

Investors were disappointed Mr. Trump didn’t clearly articulate details of how he planned to roll out an economic stimulus package, said Takeo Kamai, head of execution services at CLSA Securities Japan Co. in Tokyo.

U.S. 10-year Treasury yields fell to 0.747%, according to Tradeweb. Bond yields fall when prices rise. Brent crude, the global oil benchmark, fell nearly 5% to $34.01 a barrel.

In Tokyo, Japan’s Nikkei 225 plunged 4.4%, joining the Dow and numerous international counterparts in a bear market—a measurement defined as a retreat of more than 20% from a recent peak.

Australia’s benchmark S&P/ASX 200, whose performance is heavily influenced by financial and natural-resources stocks, fell 7.4% to its lowest in more than three years.

Banks were notable losers across the region. For lenders, tough economic times can mean less new business, more bad loans, and thinner margins on lending because both short- and long-term interest rates are low. Japan’s Mitsubishi UFJ Financial Group fell 5.3%, while Commonwealth Bank of Australia dropped 7.9%.

The outlook for the world economy is dimming rapidly due to the pandemic. This week IHS Markit slashed its forecast for global growth this year by 0.8 percentage point to 1.7%, saying it expects zero growth in the eurozone, a contraction in Japan and expansion of just 4.3% in China this year.

On Monday, U.S. stocks suffered their biggest drop since the 2008 global financial crisis. They rebounded a day later, and then sold off again steeply on Wednesday, with declines intensifying after the World Health Organization declared the coronavirus crisis a pandemic.

Paul Sandhu, the Asia-Pacific head of multiasset quant solutions and client advisory for BNP Paribas Asset Management in Hong Kong, said markets would remain volatile. “The fear coming off from the coronavirus is going to be something that continues over the next few weeks at least,” he said.


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By midafternoon Thursday in Hong Kong, the Hang Seng Index dropped more than 3%. Stocks in mainland China, which have proved resilient recently, dropped modestly, with the Shanghai Composite retreating 1.7%.

Elsewhere in the region, Thailand’s SET Index plummeted more than 8% to the lowest since 2012. “Thailand’s economy is vulnerable to the pandemic because it is heavily reliant on tourism,” said Joanne Goh, investment strategist at DBS Bank in Singapore.





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Stock-Market-Corrections-2020


Virus Fears Push Stocks Closer To A Bear Market

The Dow Jones Industrial Average suffered its worst decline since 2008 and at one point came within 65 points of touching a bear market.

For the day, the Dow sank 2,013.76 points, or 7.8%, to 23851.02. It was the first time the Dow lost more than 2,000 points in a session. The S&P 500 fell 225.81 points, or 7.6%, to 2746.56, also its worst day since 2008. And the Nasdaq Composite slid 624.94 points, or 7.3%, to 7950.68.


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All 11 sectors in the S&P 500 were down, led by energy, which slid 20%. Financials were down 11%. Industrials and materials both fell 9.2%.

By day’s end, the Dow, S&P and Nasdaq were all down roughly 19% from record highs set earlier this year. A drop of 20% from those highs would halt a bull-market run that began after the financial crisis. Stocks bottomed out 11 years ago, on March 9, 2009.

The 11-year bull market is over,“ said Peter Cecchini, the chief market strategist at Cantor Fitzgerald, noting that it isn’t just about an official 20% drop.

Mr. Cecchini said central banks suppressed interest rates over the years, and that became a big narrative investors used to justify buying stocks. Meanwhile, signs have emerged that global growth was slowing, like the inverted yield curve late year, but were ignored, he said.

“That underlying backdrop of fragility is one of the reasons why this has unwound so quickly,” he said. “When a bubble extends this far, it doesn’t take much to prick it.”

Saudi Arabia’s decision over the weekend to instigate a price war as it escalates a clash with Russia sent oil prices down by the most since the Gulf War in January 1991. Crude prices, along with U.S. government bond yields, are typically viewed as key barometers of economic health and confidence, said Gregory Perdon, co-chief investment officer at private bankers Arbuthnot Latham.


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“There has always been an assumption that when the oil price collapses the world is going to become a darker place, whether that is driven by the demand side or supply side,” Mr. Perdon said. The latest tensions put the oil market in somewhat uncharted territory with pressure in terms of both supply and demand as the coronavirus epidemic threatens to sap businesses’ appetite for energy.

The plunge in crude added to two weeks of turmoil in equity and credit markets as investors have grown increasingly concerned about economic growth stalling. It also raised fresh concerns about the risks tied to heavily indebted energy companies in the high-yield market, and the fallout for other companies if broader credit markets tighten.

U.S. government bonds, which have already rallied to unprecedented highs, extended gains. The yield on the 10-year Treasury, which moves inversely to bond prices, dropped to 0.577%. The 30-year yield fell below 1%, and more recently was at 1.003%.

“The fear today is about a global recession,” said Thomas Hayes, chairman of Great Hill Capital, a hedge fund-management firm based in New York. “If Russia does not come back to the table soon, investors worry the default risk and credit spreads widening will lead to tighter credit and even a recession.”



Public-health authorities are escalating efforts to contain the coronavirus outbreak, leading to a drop in business activity and curtailing global trade. The number of confirmed coronavirus cases has exceeded 110,000, with over 3,800 fatalities globally. At least eight American states including New York have declared states of emergency as infections spread to new parts of the U.S., and Italy quarantined some 17 million people.

Brent crude, the global gauge of oil prices, shed 18% to $37.19 a barrel, while U.S. crude futures dropped 17% to $34.37 a barrel.

U.S. energy producers were among the hardest hit. Chevron dropped 13% and Exxon Mobil fell 8.3%. Occidental Petroleum slid 33%.

Rising defaults among U.S. energy producers may make it harder for companies in other sectors to access credit markets, analysts said. “That ultimately is the negative aspect to lower oil,” said Viktor Hjort, head of credit strategy at BNP Paribas. “There is a real risk, and that is tighter credit conditions.”

The price war between major oil producers is “throwing petrol on the fire” at a time when investors are struggling to understand how deeply the outbreak will impact global supply chains and consumer spending, according to Lyn Graham-Taylor, a rates strategist at Rabobank.


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“We have got a massive demand decline brought about by the virus and now you’ve got headline inflation going through the floor: all combinations that say we need to do more easing,” Mr. Graham-Taylor said.

Stocks in the European energy sector led markets lower in the region, with BP plummeting 18% in London. Anglo-Dutch firm Royal Dutch Shell, Norway’s Equinor, Italy’s Eni, the U.K.’s BHP Group and France’s Total were also among the big decliners. That led the pan-continental Stoxx Europe 600 index down 6.3% with key equity benchmarks in the U.K. and France entering bear-market territory.

Foreign-exchange markets also faced renewed volatility on Monday, as steep drops in oil sparked a flight from commodity-linked currencies. The Russian ruble lost 7.2%, while the Norwegian Krone dropped 2.5%.

In the Asia-Pacific region, the S&P/ASX 200 index in Australia dropped 7.3%, suffering its worst day since October 2008, during the depths of the global financial crisis. That puts the gauge close to bear-market territory, which is typically defined as a peak-to-trough decline of more than 20%. Japan’s Nikkei 225 index closed down 5.1%, its biggest daily drop since 2016, while the benchmark stock index in Shanghai dropped more than 3%.

The Japanese yen, which often rallies in times of market stress, surged 2.8% to trade below 103 to the dollar, at its strongest levels since 2016. Gold, which is also normally considered a haven asset during times of turmoil, slipped 0.3%.


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“We are in uncharted territory now,” according to Hubert de Barochez, markets economist at Capital Economics. “Up until last week, what we were seeing was bond yields lower, stocks hurt and riskier currencies getting hit, but the idea was that if good news were to come all these moves would revert.”

The question now is where markets—and especially interest rates—go from here, said Dan Alpert, an investment banker and managing partner of advisory firm Westwood Capital.

“I cannot believe, that now that confidence in the market has been destroyed, that interest rates remain at 0.4%,” he said, referring to the rate on the 10-year yield. What’s more likely, he said, is a period of disinflation, or even outright deflation, that would ripple across markets and economies.

That will hurt companies, he said, especially those that are suffering in the current selloff. Firms will be talking about conserving resources, which could affect factors ranging from buybacks to wages, he said. That would cut into employment and consumer demand, he said.

“This is going to change the entire inflationary outlook,” he said.


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Coronavirus Cases Globally Exceed 100,000 As Countries Fail To Contain Spread

There were 100,329 confirmed cases of the virus world-wide, more than a fifth of which were in countries other than China, according to data compiled by Johns Hopkins University. South Korea, the second worst-hit country, reported another jump in infections, bringing its tally to 6,593. The novel coronavirus is now in around 90 countries, less than three months after it was first identified in the central Chinese city of Wuhan in December.

Chinese health authorities on Friday reported 143 new infections, but said that for the first time there were no new cases in the wider Hubei province outside of its capital of Wuhan in the previous day. The vast majority of China’s 80,555 cases have been in Hubei province, and authorities in late January locked down Wuhan and neighboring cities to help contain the disease’s spread.

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Globally, 3,406 individuals have died from the illness known as Covid-19 and 55,694 have recovered. In the U.S., there have been 233 confirmed cases and 12 deaths, mostly in the state of Washington, where some schools in the Seattle area will be closed for two weeks and companies have told employees to work from home.

On Friday, a top Hong Kong university released research that surmised the “fatality risk” for symptomatic Covid-19 patients was 1.4%, based on data its researchers analyzed from the city of Wuhan.

That is lower than the 3.4% mortality rate cited earlier this week by the World Health Organization, which was calculated from the number of deaths relative to the total number of confirmed infections.

U.S. health officials, in contrast, have said they think the mortality rate for the novel coronavirus is likely between 0.1% and 1%, in part because there could be many unreported cases or asymptomatic carriers of the virus.

Gabriel Leung, dean of the Li Ka Shing Faculty of Medicine at the University of Hong Kong, said that the estimated 1.4% mortality rate among people who showed symptoms means Covid-19 is deadlier than the 2009 swine flu epidemic, though less so than the 1918 influenza pandemic.

And given the large and rising global tally of coronavirus infections, “that means a lot of lives,” he added.

Dr. Leung’s organization—which is a WHO Collaborating Center for Infectious Disease Epidemiology and Control—calculated the disease’s mortality rate from its own estimates of how many people in Wuhan had symptoms of the disease before Feb. 25, rather than using case numbers reported by the Chinese government, which some experts suspect are understated. During the period they studied, there were 2,080 reported deaths.

On Friday, global stocks fell again and investors piled into safe government bonds on rising expectations that central banks will take more decisive action to cushion the economic blow from the coronavirus epidemic.

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A day earlier, a top WHO official warned that many countries weren’t doing enough to help contain the epidemic. Tedros Adhanom Ghebreyesus, the WHO’s director general, said that while the bulk of coronavirus cases are currently concentrated in a few countries, other governments need to respond more forcefully to the global spread by activating emergency plans, educating the public, readying hospitals and increasing their capacity for testing for the virus.

“This epidemic can be pushed back, but only with a collective, coordinated and comprehensive approach that engages the entire machinery of government,” Mr. Ghebreyesus told a briefing at the U.N. health agency’s Geneva headquarters late Thursday. “This is not a drill,” he added.

Other countries in Asia reported higher case numbers on Friday. Japanese authorities said there were 31 new cases, taking the country’s total to 348. Of those, 35 showed no symptoms.

A report from the Asian Development Bank on Friday estimated the coronavirus epidemic could reduce the world’s economic output by $77 billion-$347 billion, or 0.1%-0.4%, of global gross domestic product.

It said the virus will have a significant impact on developing Asian economies through numerous channels, including sharp declines in domestic demand, lower tourism and business travel, trade and production linkages, supply disruptions and health effects.






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U.S. Stocks And Bond Yields Dropped As Anxiety About Virus Fallout Returns

The Dow Jones Industrial Average fell more than 650 points, or 2.5%, erasing much of the gains notched Wednesday. A strong Super Tuesday performance by former Vice President Joe Biden and growing signs of a coordinated response to the coronavirus had led to a sharp rally in U.S. stocks.

That enthusiasm quickly dissipated Thursday. The S&P 500 fell 2.3%. The Nasdaq Composite shed 1.8%. Losses in the stock market were broad, with all 11 of the S&P 500’s sectors falling in early trading Thursday.



It has been a dizzying week on Wall Street. Sharp stock swings up and down have dominated the week, continuing a bout of volatility that led to the worst selloff since the financial crisis last week.

“I know that these wild swings are overwhelming for all of us,” said Amy Kong, chief investment officer at Barrett Asset Management. “The situation is still unfolding.”

Still, some investors said they expected the stock market gyrations to continue, with much remaining unknown about how far the coronavirus will spread and its ramifications on economic growth around the globe.

In recent days, the outlook for corporate earnings and economic growth this year has darkened, weighing on the stock market. Many have been worried that the virus will harm consumer sentiment and business investment around the world.

Investors will analyze fresh economic data this week for signs of wilting growth. Data on Thursday showed that U.S. factory orders fell in January. New orders for manufactured goods decreased 0.5%, the Commerce department said, more than what economists surveyed by The Wall Street Journal had expected.


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On Friday, investors will be parsing the monthly jobs report to see if U.S. hiring remained strong in February. The number of Americans applying for first-time unemployment benefits fell last week, the Labor Department said Thursday, suggesting anxiety about the spread of the coronavirus haven’t yet affected layoffs.

The early stock decline Thursday suggests that steps by the Federal Reserve and U.S. lawmakers this week to bolster economic growth are failing to assuage investors.

Health authorities are warning that it may be impossible to fully contain the pathogen as infections are spreading within many communities. Meanwhile, steps taken to halt the outbreak have curtailed travel and business activity in the epicenters of the disease.

“There is a sense that there is only so much monetary policy can do, given markets have priced that in already,” said Jonas Goltermann, senior markets economist at Capital Economics. “Even with all the stimulus measures, those are not going to stop the virus and until there are signs the rate of infection is slowing we don’t think there will be a sustained rally.”

Investors are betting on more interest-rate cuts later this year, CME Group data show.

As stocks fell, investors sought the relative safety of government bonds, pushing the yield on the benchmark 10-year U.S. Treasury note down to 0.930%, from 0.994% at the close on Wednesday. Yields fall as bond prices rise.

The falling yields reflect high anxiety in markets as investors seek traditionally safer investments. They also have wide-ranging effects on borrowing costs and bank profitability. Shares of financial companies were some of the hardest hit in the stock market Thursday. Falling yields can crimp profits for big banks.

Meanwhile, mortgage rates fell to their lowest level on record Thursday as yields fell.

European stocks also fell, with the pan-continental Stoxx Europe 600 index down 1.6%. The basic resources sector and aerospace and defense companies were among the hardest hit.

U.S. stocks are poised to remain turbulent with the Cboe Volatility Index, or VIX, climbing to over 35. The index, sometimes known as Wall Street’s fear gauge, last week topped 40 to hit its highest level since 2011.
With volatility elevated and gauges of investor confidence low, markets are likely to keep swinging, according to Olivier d’Assier, head of applied research for the Asia-Pacific region at financial analytics firm Qontigo.

“We are going to be stuck in this for a while” Mr. d’Assier said. “You’ve got short-term traders buying on the stimulus and then you have medium- and long-term investors de-risking.”

Investor sentiment had shown signs of improvement Wednesday after U.S. lawmakers passed an $8 billion-emergency spending package on Wednesday to combat the coronavirus. Meanwhile, the International Monetary Fund detailed the $50 billion in lending programs it has that could help countries grappling with the virus.

Travel and leisure stocks continued to take a beating. Cruise line operator Norwegian Cruise Line Holdings fell about 9.8%, while Royal Caribbean Cruises dropped 12% as travelers continue to back out of planned cruises because of virus fears. American Airlines retreated 8.4%.

In contrast, most Asian markets rose Thursday, with the Shanghai Composite Index and Hong Kong’s Hang Seng Index both closing up around 2%.
Eli Lee, head of investment strategy at Bank of Singapore, said he viewed recent market action as noise. “The rebound is the latest in a series of gyrations we’ve seen, and reflects the fact equities were likely oversold,” he said.


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Mr. Lee said a coordinated international monetary and fiscal response would help boost financial conditions and investor sentiment, but added: “These are ultimately very blunt tools against a medical crisis that is poised to cause a sharp shock to consumer demand and production.”

In commodities, Brent crude, the global oil benchmark, wavered between gains and losses before edging down 0.6% in recent trading. OPEC has reached a preliminary agreement to cut crude output amid a global glut and eroding demand, The Wall Street Journal reported, as members of the oil-exporting group and their allies gather for a two-day meeting in Vienna. The collective plan, in response to the virus outbreak, still needs to be approved by Russia.

“In order for this to succeed, they need Russia to be onboard or they would just pass over market share to a major competitor,” said Ole Hansen, head of commodity strategy at Saxo Bank.





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Coronavirus Fears Hammer Europe’s Tourism Industry

The long line to get into St. Peter’s Basilica in Rome is gone. The coronavirus outbreak in Europe is scaring away travelers and hammering tourism just as the high season is getting under way.

Thousands of people have canceled their trips to the region since the disease began to spread in Italy last month, drying up revenue for hotels, restaurants, nightclubs and conference planners across the continent. Those businesses are the economic lifeblood of many regions in Europe, clustered around its famed cultural attractions. The outbreak is costing the European Union’s tourism industry €1 billion ($1.1 billion) a month, said Thierry Breton, the EU’s internal market commissioner.

“It gets worse and worse. The cancellations are piling up,” said Franck Trouet, spokesman for France’s Group of Independent Hoteliers and Restaurateurs. A third of its members have seen their revenue fall in February compared with a year ago, when business was already suffering because of the yellow-vest protests in France. In Paris, some cafes and nightclubs have seen a 40% drop in sales, he said.

Authorities around the world have told people not to travel to northern Italy, the site of Europe’s largest outbreak. That warning, however, is having a ripple effect far beyond the canals of Venice.

“The damage this is causing has the potential to be way out of proportion to the threat posed by the virus,” says Tom Jenkins, chief executive of ETOA, which represents European tour operators.


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The outbreak comes at a particularly bad time for the industry: The start of the period when people book their spring and summer travel plans. That includes pilgrims coming to the Vatican for the Holy Week leading up to Easter Sunday, and tourists from the U.S. and Asia coming to the continent over summer vacation.

Flight bookings to Europe the last week of February, when the Italian outbreak emerged, fell 79% compared with the same period a year earlier, according to ForwardKeys, which tracks travel data. In Italy, cancellations have exceeded new bookings over that time, the firm said.

The Louvre reopened Wednesday after closing for several days, because staff refused to work. They were spooked by the French government’s decision to ban indoor gatherings of more than 5,000 to contain the spread of the virus. The museum, which is the most visited in the world, welcomes more than 26,000 visitors on a typical day.

Given bottles of hand sanitizer by management, staff were back at work, watching small groups of visitors drift through the museum. The Dutch masters section—stocked with Rembrandts and Vermeers—was nearly empty. Michelangelo’s “Slaves” sculptures weren’t surrounded as usual.

And inside the room housing the Mona Lisa, there was plenty of space to gaze at Leonardo da Vinci’s masterpiece and other paintings of the Italian Renaissance.

“Normally, you almost don’t see the paintings there are so many people,” says Luis Filipe De-Souza, an attendant at the Louvre.


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The Vatican is facing a sharp drop in visitors to the Vatican Museums, which bring in €40 million in profit in a normal year and are a key revenue source for the church. Vatican officials declined to comment on a report in an Italian newspaper saying the museums had experienced a 60% drop in attendance.

Organizers of ITB Berlin, the travel industry’s main annual conference, announced last week that they had canceled the meeting because of the coronavirus outbreak. German health authorities feared the event, which draws tens of thousands of people from around the world, could lead to a spike in cases in the country.

The cancellation has led to grumbling that the travel industry itself is feeding into global panic about the virus.

“It sends a dreadful signal,” said Mr. Jenkins, head of the tour operators’ group.





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Stock-Market-Corrections-2020




Financial Markets – Panic Selling Continues as Dow Tumbles Below 25,000

Panic selling continued in the U.S. stock market on Friday, putting the market on course for its biggest weekly loss since 2008 amid growing signs that the coronavirus outbreak will ultimately cause an economic shock in Western economies as well as in China and its Asian trading partners.

The Dow Jones Industrial Average opened with another loss of 627 points, or 2.6%, taking it below the 25,000 mark. By 10:33 AM ET (1533 GMT), the DJIA was down 4%, or 1,034 points.

The S&P 500 was down 3.4%, at its lowest since October 2019. The Nasdaq Composite, meanwhile, fell 2.7%.


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Overnight, another sharp jump in the number of confirmed Covid-19 cases in South Korea and Iran, coupled with new emergency virus containment measures in Germany, Switzerland and elsewhere, all contributed to keeping the mood negative. A better-than-expected monthly rise of 0.6% in U.S. personal income in January was of little consolation.

“The landscape remains very uncertain,” said Mark Dowding, chief investment officer of BlueBay Asset Management in a weekly note. “For now, there is a sense with the coronavirus that things will need to get worse before they can get better.”

He argued that the point of “maximum bearishness” could be another couple of weeks away.

“This could coincide with the moment that Covid19 is officially declared a pandemic by the World Health Organization,” something that could lay the groundwork for a coordinated response of policy stimulus, Dowding argued. Such hopes seem far away at the moment, with the U.S. and German governments both playing down the seriousness of the situation.



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The bond market is now betting heavily on the Federal Reserve riding to the rescue. The2-Year Treasury bond yield dipped below 1% overnight and then roared lower to 0.91% after St. Louis Fed President James Bullard indicated that the Fed, if not fiscal policy, would react to a global pandemic.

“Further policy rate cuts are a possibility if a global pandemic actually develops with health effects approaching the scale of ordinary influenza, but this is not the baseline case at this time,” Bullard, who doesn’t vote on monetary policy this year, said Friday in prepared remarks to be delivered in Fort Smith, Arkansas.

Hot money continued to flood out of Tesla (NASDAQ:TSLA), which lost another 7.1%, taking its losses for the week to over 30%.

Beyond Meat (NASDAQ:BYND) suffered similar problems following a surprise quarterly loss after the bell Thursday, losing 17.6%. It’s now down 25% for the week.

Apple (NASDAQ:AAPL) was also the subject of some heavy profit-taking, falling 5.1% to its lowest since December. None of the companies mentioned released any news of note.

One stock emphatically bucking the trend was Zoom Video Communications (NASDAQ:ZM), the maker of software for video conference calls. Zoom Video stock has been flying as participants price in a boom in such calls as Covid-19 spawns a global outbreak of working from home and restrictions on business travel.

JPMorgan (NYSE:JPM), L’Oreal (PA:OREP) and Nestle (SIX:NESN) have all said this week they intend to limit staff travel as a result of the outbreak.



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China Makes Bad Loans Disappear as Virus Pummels Banks

Chinese banks are taking extraordinary measures to avoid recognizing bad loans, seeking to shield themselves and cash-strapped borrowers from the economic fallout of the coronavirus outbreak.

Some of the measures, which include rolling over loans to companies at risk of missing payment deadlines and relaxing guidelines on how to categorize overdue debt, have the explicit approval of regulators in Beijing. Some lenders are also refraining from reporting delinquencies to the country’s centralized credit-scoring system and allowing borrowers to skip interest payments for as long as six months, according to people familiar with the matter, who asked not to be named discussing internal decisions.


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The moves will buy time for both Chinese companies and the nation’s $41 trillion banking industry, after the outbreak brought much of the world’s second-largest economy to a standstill. But they’re also fueling concern about a buildup of hidden risks on lenders’ balance sheets. Some analysts worry that China is reversing a multi-year push to increase the transparency of its financial system and undermining the long-term health of banks.

“This will provide breathing space,” said Harry Hu, a credit analyst at S&P Global Ratings. “It will also likely undermine standards, making some Chinese banks less creditworthy in the long run.”

Earlier this month, S&P said a prolonged health emergency could cause China’s non-performing loan ratio to more than triple to about 6.3%, amounting to an increase of 5.6 trillion yuan ($800 billion) in bad debt.

The push by banks and regulators to tamp down NPLs is part of a broader effort by President Xi Jinping’s government to shore up the Chinese economy, which some forecasters say may suffer a rare quarter-on-quarter contraction in the first three months of this year. In addition to pumping billions of yuan into the banking system to make it easier for lenders to extend credit, authorities have cut interest rates, reduced taxes and pledged to adopt more “proactive” fiscal policies.

Shares of Chinese banks continued to under-performer the benchmark index this year in Hong Kong. The four biggest state-owned banks are trading at an average 0.5 times their estimated book value for this year, near the record low.

The NPL measures mark an abrupt shift in China’s approach toward financial regulation. Authorities in Beijing have spent the past three years trying to instill more discipline in the banking system and develop credit markets that more accurately price risk. As part of that effort, they’ve encouraged banks to be more diligent when accounting for bad loans.

The outbreak has changed the government’s priorities. In a press conference this week, Ye Yanfei, an official at the China Banking and Insurance Regulatory Commission, said policy makers need to be more tolerant when it comes to bad loans. “Saving corporates now is saving banks themselves,” Ye said.

China isn’t the only country to have relaxed accounting standards for banks during a crisis. In April 2009, during the depths of the global recession, mark-to-market rules in the U.S. were eased after banks complained that they resulted in bigger-than-warranted writedowns on thinly traded mortgage securities. While critics of the decision said it reduced transparency, it arguably helped big American lenders recover more quickly from the crisis.

China’s ability to control the pace of NPLs during economic shocks is an advantage of its centralized financial system, according to Leland Miller, the chief executive officer of China Beige Book.

“When you have a party that controls all the counterparties in the economy — you have state banks loaning to state enterprises and you have state banks loaning to small- and medium-sized enterprises — you can tell them to lend,” Miller said in an interview on Money Undercover with Bloomberg TV’s Lisa Abramowicz. “You never have to freeze up liquidity in the same way that a commercial financial system would work.”

Yet even if China’s banks turn on the credit taps, lots of businesses may struggle to secure the funding they need to stay afloat.

A survey of small- and medium-sized Chinese companies conducted this month showed that a third of respondents only had enough cash to cover fixed expenses for a month, with another third running out within two months. About two-thirds of the country’s 80 million small businesses, including many mom-and-pop shops, lacked access to loans as of 2018, according to China’s National Institution for Finance & Development.

It remains to be seen whether the benefits of delaying NPLs will outweigh the costs. Much depends on how quickly Chinese authorities can contain the outbreak and get the country back to work. In the week to Feb. 21, the economy was likely running at 50%-60% capacity, according to Bloomberg Economics.



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A sharp recovery in coming months would likely ease concerns that banks are obscuring the true health of their balance sheets. “If they can tide the virus over, then the delinquent loans will disappear,” said Zhang Shuaishuai, a banking analyst at China International Capital Corp.

But that’s far from a given. S&P analysts see scope for caution, saying last week that it may take years for the industry to revert to normal standards for recognizing NPLs and that some banks may see their long-term health suffer as a result.



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Moderna Inc. Ships First Experimental Coronavirus Vaccine For Human Tests

Drugmaker Moderna Inc. has shipped the first batch of its rapidly developed coronavirus vaccine to U.S. government researchers, who will launch the first human tests of whether the experimental shot could help suppress the epidemic originating in China.

Moderna on Monday sent vaccine vials from its Norwood, Mass., manufacturing plant to the National Institute of Allergy and Infectious Diseases in Bethesda, Md., the company said. The institute expects by the end of April to start a clinical trial of about 20 to 25 healthy volunteers, testing whether two doses of the shot are safe and induce an immune response likely to protect against infection, NIAID Director Anthony Fauci said in an interview. Initial results could become available in July or August.

Moderna’s turnaround time in producing the first batch of the vaccine—co-designed with NIAID, after learning the new virus’s genetic sequence in January—is a stunningly fast response to an emerging outbreak.

If a trial starts as planned in April, it would be about three months from vaccine design to human testing. In comparison, after an outbreak of an older coronavirus, severe acute respiratory syndrome, in China in 2002, it took about 20 months for NIAID to get a vaccine into the first stage of human testing, according to Dr. Fauci.

“Going into a Phase One trial within three months of getting the sequence is unquestionably the world indoor record. Nothing has ever gone that fast,” Dr. Fauci said.

Public-health authorities say advances in vaccine technology, aided by government and private investments, are shortening development timelines when outbreaks occur. In the past, researchers scrambled to develop vaccines in response to outbreaks such as SARS, Ebola and Zika with mixed results. Older types of vaccines are developed from viral proteins that must be grown in eggs or cell cultures, and together with animal testing it can take years before a vaccine can be used in humans.

Newer approaches rely on what are known as platform technologies—building blocks that can be tweaked quickly with the genetic information from a newly emerged pathogen.

The fast production of a vaccine and plans to test it soon don’t guarantee its success. “You’re never sure until you’re at the end what you have,” said Bruce Gellin, president of global immunization at the Sabin Vaccine Institute. Saying there are other coronavirus vaccines in the works, he added: “The sequence of testing is designed to sort out what works from what doesn’t. That’s why it’s important to try as many things as possible that seem feasible, because not all horses will finish the race.”

It is uncertain whether Moderna’s vaccine will work because its gene-based technology hasn’t yet yielded an approved human vaccine. And even if the first study is positive, the coronavirus vaccine might not become widely available until next year because further studies and regulatory clearances will be needed, Dr. Fauci said.

But health authorities say it is worth placing bets on these new technologies in the face of fast-moving outbreaks. Since early January, when only a few dozen cases were confirmed in central China, the virus has spread to more than 79,000 people, including more than 2,600 who have died. The vast majority of the cases are in China, according to the World Health Organization.

Dr. Fauci said it is possible the spread of coronavirus could lessen during warmer months, but then return next winter and become a seasonal virus like the flu, making a vaccine useful even if it isn’t ready for widespread distribution until next year.

“The only way you can completely suppress an emerging infectious disease is with a vaccine,” Dr. Fauci said in his office in Bethesda. “If you want to really get it quickly, you’re using technologies that are not as time-honored as the standard, what I call antiquated, way of doing it.”

Moderna, which has more than 800 employees, was founded in 2010 to develop drugs and vaccines based on what is known as messenger RNA, the genetic molecules that carry instructions from DNA to the body’s cells to make certain proteins. The company is targeting cancer, heart disease and infectious diseases. It hasn’t brought any drugs or vaccines to market.

Moderna Chief Executive Stephane Bancel said he got in touch with NIAID after hearing about the new China virus while vacationing with his family in France in early January, to discuss collaborating on a vaccine.

Chinese scientists found the genetic sequence of the new virus and published it online around Jan. 10. Researchers at NIAID and Moderna analyzed the sequence and homed in on a section they believed was most likely to induce the desired immune response if incorporated into a vaccine. NIAID agreed to run a clinical trial if Moderna could supply a vaccine.

Moderna didn’t need actual samples of the virus or its proteins. The company’s vaccines instead contain nucleic acids with genetic codes that instruct the body’s own cells to make certain proteins from the virus that don’t infect a person, but trigger an immune response.

Moderna in 2018 opened a manufacturing site in the shell of a former Polaroid plant in Norwood, near the company’s Cambridge, Mass., headquarters. In the plant, employees wearing white lab gowns, hair nets and safety goggles work amid lab hoods, robotic machinery and steel tanks to produce drugs and vaccines for clinical trials. Meeting rooms are named after famous scientists such as Curie and Pasteur.

To make the coronavirus vaccine, Moderna repurposed some of the robotic equipment that was making cancer vaccines tailored to the genetic mutations of patients’ tumors.

As many as 100 manufacturing and quality-control employees were involved in the effort, many working nights and weekends. As manufacturing ramped up, the company’s leaders had frequent meetings, calls and WhatsApp messaging chains to monitor progress, and stayed in close contact with NIAID.

After Moderna’s effort became public in January, friends and family members became interested.

Juan Andres, Moderna’s head of technical operations, said, “I wasn’t used to my kid thinking I did anything cool,” but his 15-year-old son began asking questions about the project at dinner.

Moderna finished manufacturing about 500 vials on Feb. 7, a Friday. Normally, the company would have waited until Monday to start quality-control tests, but about 10 to 15 workers spent the weekend testing samples for potency and other features. The batch cleared most tests that weekend, but it took about two weeks to complete sterility testing. Moderna stored the supply in freezers set to minus-70 degrees Celsius.



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One risk of moving so fast is that Moderna and NIAID won’t know for sure they picked the best fragment of the virus’s genetic sequence to target until the human study is completed.

“It is possible it’s going to work, but we have to wait and see,” said Mr. Bancel, Moderna’s CEO.

The first trial will be conducted at NIAID’s clinical-trials unit in Bethesda. If the first one is successful, a second trial of hundreds or thousands of participants could begin, which could take six to eight months, Dr. Fauci said. This trial could be conducted partly in the U.S. but also in China or a region where the virus is spreading, so the testing could gauge whether the vaccine reduces infection rates.

If the second trial is positive, the vaccine could be ready for widespread use, he said. How widely the virus has spread by then will determine whether it is given to targeted groups such as health-care workers, or more broadly to the general population, Dr. Fauci said.





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The Coronavirus Outbreak Is Bringing Attention To The Fast-Growing Vaccine Industry

The vaccine market has grown sixfold over the past two decades, worth more than $35 billion today, according to AB Bernstein. The firm said the industry has consolidated to four big players that account for about 85% of the market — British drugmaker GlaxoSmithKline, French pharmaceutical company Sanofi, and U.S.-based Merck and Pfizer.

“For every dollar invested in vaccination in the world’s 94 lowest-income countries, the net return is $44. Hard to argue against,” Wimal Kapadia, Bernstein’s analyst, said in a note. “This oligopoly has been built through significant market consolidation driven primarily by the complexities of the manufacturing and supply chain.”

These companies have jumped into the race to combat the deadly coronavirus, working on vaccine or drug programs. Investors have been flocking to some biotech names amid market volatility in hopes that their initiatives to develop treatment and prevention for the coronavirus could come to fruition at some point.



Sanofi is teaming up with the U.S. government to develop a vaccine for the new virus, hoping its work on the 2003 SARS outbreak could speed up the process. GlaxoSmithKline said this month it is partnering with the Coalition for Epidemic Preparedness Innovations for a vaccine program.




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Still, any commercial treatment for the coronavirus could be years away. Experts have warned despite recent advances, the public shouldn’t expect a coronavirus vaccine to hit the market until early next year.

The Bernstein analyst said Sanofi and GlaxoSmithKline both have a stable vaccine portfolio, including shingles, flu, pertussis and polio vaccines, that will keep driving revenue.

‘Long-lived assets’
Merck’s vaccine business generated $8.4 billion of revenues in 2019, the segment has been growing at an annual rate of 9% since 2010, according to Bernstein.

Its human papillomavirus vaccine Gardasil 9 will be “the biggest selling vaccine of all time,” Kapadia said. “Gardasil 9 will take over the HPV market given competition is limited – supply is the only decelerator.”

For Pfizer, while its vaccine business has stagnated in recent years, its pipeline has “blockbuster potential,” the analyst noted.

“Vaccines are long-lived assets, have high barriers to entry, typically stable/growing pricing, mostly limited competition and no patent cliff,” Kapadia said.

To be sure, while vaccine companies can see periods of high growth, real innovation is needed to be long-standing winners in a market that requires major capital and faces cheaper alternatives from emerging markets, the analyst cautioned.




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Gold Traded Near a Seven-Year High On Concern That The Coronavirus Outbreak Will Retard Global Growth

Bullion is rising at a time U.S. stocks are at an all-time high even as traders weigh the disease’s impact. While Hubei, the center of the outbreak, reported fewer cases after another revision, there are signs of deepening economic damage. In addition, two deaths were reported in Iran and two people from a quarantined ship in Japan died, highlighting the threat outside China.

The traditional haven has climbed more than 6% this year amid mounting concern over the effects of the virus, with companies from Apple Inc. to Burberry Group Plc cutting guidance. While minutes from the latest Fed meeting showed that officials indicated they could leave rates unchanged for many months, futures traders maintained expectations for at least one cut over 2020.


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“Support for the yellow metal is driven by economic uncertainty related to the coronavirus – i.e. how long could the pandemic last and what will its ultimate impact be on world economic growth?” Gavin Wendt, senior resource analyst at MineLife Pty in Sydney, said in an email.

“Importantly, we’ve seen gold performing strongly in a range of currencies, hitting new all-time highs during 2019 and 2020,” said Wendt. That reflects not only investor uncertainty, but also a likelihood more stimulus will be required, including lower rates, to boost activity in a post-coronavirus world, he said.

Spot gold was steady at $1,610.43 an ounce at 11:27 a.m. in Singapore, near Wednesday’s peak of $1,612.98, which was the highest since March 2013. Holdings in global exchange-traded funds backed by bullion have risen to a record, and are on course for a sixth weekly expansion.

Prices may top $1,650 over the coming weeks, according to UBS Group AG’s Global Wealth Management unit, which says it remains long on the precious metal.

OVERNIGHT MILLIONAIRE MIND-HACKS SECRETLY USED BY THE RICH & FAMOUS…

“With U.S. equity valuations elevated, any further upsets could see another bout of volatility, a further rally in government bonds and a higher gold price,” analysts Wayne Gordon and Giovanni Staunovo wrote in a report dated Feb. 19.

Palladium climbed 0.5% to $2,731.09 an ounce. The metal used to curb emissions from vehicles touched an all-time high of $2,849.61 on Wednesday on concerns over a widening global deficit, and as the Chinese government pledged to stabilize car demand in the country.

Among other main precious metals, silver was flat, while platinum dropped.


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Stock Market Today: Markets rebound, Investors Reassured by Beijing’s Response to the Coronavirus

Stock Market News Today — US stocks hit records, with the S&P 500, Nasdaq Composite and Dow Jones Industrial Average each hitting all-time intraday highs soon after the open.

Asian markets rebounded from the previous session’s sell-off. Hong Kong’s Hang Seng index rose 1.3 per cent, recovering some of Tuesday’s losses, while shares in mainland China rebounded off year-lows to close higher. European markets nudged higher.

“The spread of a new coronavirus across Asia and into the US is clearly a major public health concern, but we suspect that its economic effects will be modest,” said Jennifer McKeown, head of global economics at Capital Economics.

The coronavirus has killed nine people and infected at least 440 in China, and has since spread to other Asian countries and North America. Controlling the outbreak has now reached a critical stage as more than 100m Chinese prepare to board trains and aeroplanes to return home for the Lunar New Year.

The outbreak has evoked memories of China’s Sars crisis in 2003, but markets have been reassured by a higher degree of urgency and transparency in controlling the disease.

“The speed with which this virus has been identified is testament to changes in public health in China since Sars and strong global co-ordination through the World Health Organisation,” Jeremy Farrar, director of health research foundation Wellcome, said.

In 2003, the Sars outbreak sent Hong Kong into recession and the Hang Seng index fell nearly 7.5 per cent in the first quarter, but the market quickly recovered throughout the rest of the year.

Economists at Deutsche Bank said the effects from an escalation of the coronavirus would be felt in the local retail, travel and hotel and catering industries, but that these would likely recover quickly and most service, trade and manufacturing activities would not be seriously affected.

Investors are moderating their concerns over the virus,” the bank’s strategist Jim Reid said.

Government bonds were stable while the China’s offshore renminbi was flat after its weakest day in five months on Tuesday.




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Plus500 Review 2020

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How To Start Investing In 2020

StockMarketNews.Today — Over half of Americans (55%) say they are not participating in the stock market, according to a 2019 poll of over 8,000 U.S. adults conducted by MetLife…. Read More ›


Best Stock Trading Platform In Europe {2020}

⇑⇓ Best Trading Platform Europe ⇓⇑ StockMarketNews.Today — what is the best stock trading platform in Europe for 2020? ….  How To Choose The Best Online Broker in Europe { 2020 } … Best Online Trading Platform. Start Trading Now or Try… Read More ›


Best Stock Market Sectors For 2020

♦ Stock Market Predictions For 2020 ♦ StockMarketNews.Today — After another big year for the stock market and the U.S. economy in 2019, investors are looking ahead to 2020 to determine which sectors will lead the next phase of the… Read More ›




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• Business & Financial News – Stock Market News Today •


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Plus500 is a streamlined broker that focuses on trading in a wide range of financial markets with relatively low spreads and no commissions but without offering many extra services. Plus500 has been in the forex and CFD business since 2008. They are registered in the U.K. and licensed by the Financial Conduct Authority (FCA).

The company offers access to a comprehensive product line including forex, stock indexes, equities, commoditiescryptocurrencies, ETFs and options. Plus500 is the first broker to introduce a bitcoin CFD in 2013. The company does not charge commissions on any of its trades.

All costs are contained within the spread for each of more than 2,000 trading instruments offered on Plus500’s WebTrader platformPlus500 Ltd. (PLUS.L) is a publicly traded company on the AIM section of the London Stock Exchange since 2013 with a £1.73 billion ($2.25 billion) market capitalization and clients in more than 50 countries around the world. Plus500 offers access to more than 2,000 trading instruments.


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Trust … the company is registered with the Financial Conduct Authority (FCA), CySEC, ASIC, FSCA, FMA, MAS, and the ISA, which provides good accountability and visibility. The company is required to take steps to ensure client funds are not comingled with corporate funds – ensuring that client money and assets are protected in the unlikely event that Plus500 becomes insolvent – by holding those funds in segregated accounts at regulated banks.

If Plus500 defaults, any shortfall of funds of up to £50,000 may be compensated for under the Financial Services Compensation Scheme (FSCS). If the custodian bank holding client funds goes into liquidation, any shortfall of funds of up to £85,000 may be compensated for under the FSCS.

Plus500 also offers Negative Balance Protection, ensuring that clients cannot lose more than they have put into their account. Guaranteed stop losses can be used on some instruments depending on market conditions but they are subject to a wider spread.

The company does not charge commissions on any of its trades. All costs are contained within the spread for each of more than 2,000 trading instruments offered on Plus500’s WebTrader platform. Large volume traders do not get a trading discount at Plus500 and the spread is the same whether you trade one lot or 1,000 lots.

There are no charges for normal withdrawals or terminating an account. However, inactivity fees kick in after an account has been idle for three months. Beginning traders can open an account with as little as £100.

Traders can qualify for a “professional” account, which offers a higher level of maximum leverage, but the costs are the same. Investors with a professional account may increase their maximum leverage ten-fold, from 1:30 to 1:300.Spreads at Plus500 were some of the lowest in the market.

Plus500 also offers access to options trading on many markets. These are very similar to plain call and put options traded on exchanges, but they are not standardized which means that the option premium can be customized for your risk tolerance and strategy objectives.


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Best Stock Market Books For Beginners {2020}


#1 – The Intelligent Investor. (Revised Edition)

This classic text is annotated to update Graham’s timeless wisdom for today’s market conditions… The greatest investment advisor of the twentieth century, Benjamin Graham, taught and inspired people worldwide. Graham’s philosophy of “value investing” — which shields investors from substantial error and teaches them to develop long-term strategies — has made The Intelligent Investor the stock market bible ever since its original publication in 1949.

Over the years, market developments have proven the wisdom of Graham’s strategies. While preserving the integrity of Graham’s original text, this revised edition includes updated commentary by noted financial journalist Jason Zweig, whose perspective incorporates the realities of today’s market, draws parallels between Graham’s examples and today’s financial headlines, and gives readers a more thorough understanding of how to apply Graham’s principles.

Vital and indispensable, this HarperBusiness Essentials edition of The Intelligent Investor is the most important book you will ever read on how to reach your financial goals.



#2 – Stock Investing For Dummies (Business & Personal Finance)

Grow your stock investments in today’s changing environment. Updated with new and revised material to reflect the current market, this new edition of Stock Investing For Dummies gives you proven strategies for selecting and managing profitable investments. no matter what the conditions. You’ll find out how to navigate the new economic landscape and choose the right stock for different situations—with real-world examples that show you how to maximize your portfolio.

The economic and global events affecting stock investors have been dramatic and present new challenges and opportunities for investors and money managers at every level. With the help of this guide, you’ll quickly and easily navigate an ever-changing stock market with plain-English tips and information on ETFs, new rules, exchanges, and investment vehicles, as well as the latest information on the European debt crisis.

Incorporate stocks into your investment portfolio
> Understand and capitalize on current market conditions
> Balance risk and reward
> Explore new investment opportunities
Stock Investing For Dummies is essential reading for anyone looking for trusted, comprehensive guidance to ensure their investments grow.



#3 – Encyclopedia of Chart Patterns

In this revised and expanded second edition of the bestselling Encyclopedia of Chart Patterns, Thomas Bulkowski updates the classic with new performance statistics for both bull and bear markets and 23 new patterns, including a second section devoted to ten event patterns. Bulkowski tells you how to trade the significant events — such as quarterly earnings announcements, retail sales, stock upgrades and downgrades — that shape today?s trading and uses statistics to back up his approach. This comprehensive new edition is a must-have reference if you’re a technical investor or trader. Place your order today.
“The most complete reference to chart patterns available. It goes where no one has gone before. Bulkowski gives hard data on how good and bad the patterns are. A must-read for anyone that’s ever looked at a chart and wondered what was happening.”
— Larry Williams, trader and author of Long-Term Secrets to Short-Term Trading.



#4 – How to Make Money in Stocks

Anyone can learn to invest wisely with this bestselling investment system!… Through every type of market, William J. O’Neil’s national bestseller, How to Make Money in Stocks, has shown over 2 million investors the secrets to building wealth. O’Neil’s powerful CAN SLIM® Investing System―a proven 7-step process for minimizing risk and maximizing gains―has influenced generations of investors.

Based on a major study of market winners from 1880 to 2009, this expanded edition gives you:

>Proven techniques for finding winning stocks before they make big price gains
>Tips on picking the best stocks, mutual funds, and ETFs to maximize your gains
>100 new charts to help you spot today’s most profitable trends
>PLUS strategies to help you avoid the 21 most common investor mistakes!

“I dedicated the 2004 Stock Trader’s Almanac to Bill O’Neil: ‘His foresight, innovation, and disciplined approach to stock market investing will influence investors and traders for generations to come.’”
―Yale Hirsch, publisher and editor, Stock Trader’s Almanac and author of Let’s Change the World Inc.

“Investor’s Business Daily has provided a quarter-century of great financial journalism and investing strategies.”
―David Callaway, editor-in-chief, MarketWatch

“How to Make Money in Stocks is a classic. Any investor serious about making money in the market ought to read it.”
―Larry Kudlow, host, CNBC’s “The Kudlow Report”.



#5 – How to Day Trade for a Living

Very few careers can offer you the freedom, flexibility and income that day trading does. As a day trader, you can live and work anywhere in the world. You can decide when to work and when not to work. You only answer to yourself. That is the life of the successful day trader. Many people aspire to it, but very few succeed. Day trading is not gambling or an online poker game. To be successful at day trading you need the right tools and you need to be motivated, to work hard, and to persevere… This book is definitely NOT a difficult, technical, hard to understand, complicated and complex guide to the stock market. It’s concise. It’s practical. It’s written for everyone. You can learn how to beat Wall Street at its own game.