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Tuesday, March 31, 2020

USA: Dow drops 400 points as stocks close out their worst first quarter ever

The Dow Jones Industrial Average closed 410.32 points lower, or 1.8%, at 21,917.16. The  500 dropped 1.6% to 2,584.59. The Nasdaq Composite fell nearly 1% to 7,700.10. The 30-stock benchmark was up as much as 152 points earlier in the day.

The Dow and S&P 500 had their worst first-quarter performances ever, losing 23.2 and 20%, respectively. The Dow also had its worst overall quarter since 1987 while the S&P 500 had its biggest quarterly loss since 2008.

Read more at:
https://www.cnbc.com/2020/03/30/stock-futures-are-flat-following-rebound-from-coronavirus-sell-off.html

Sunday, March 29, 2020

Saturday, March 28, 2020

U.S.-Europe Travel Ban: The Most Impacted Airlines, Countries And Airport Hubs In Trump’s Fight Against Coronavirus - by Will Horton

viation’s most important international market, travel between Europe and North America, will be severely impacted, at least in the short-term, from U.S. President Donald Trump’s announcement of a 30-day restriction on travel between the U.S. and most of Europe. The measure is an effort to limit the spread of coronavirus in the U.S.

The restriction applies to foreign nationals who, within the last 14 days, have been to one of the 26 countries in the Schengen Area, a European bloc with open border agreements. The United Kingdom and Ireland are not part of Schengen, and are so far excluded from the restrictions. There was initial confusion of the details due to conflicting information between President Trump, his aides and other government departments.

Daily flights between US and Europe that could be impacted by Trump's travel banU.S. citizens, and others with exemptions, can continue travel but will be re-directed through certain U.S. airports, as has been done for passengers from Mainland China and Iran.

Aviation will be directly impacted from passengers unable to travel, and indirectly affected as the travel restriction sends negative connotations and sees consumers lose market confidence.

The situation is dynamic, in its early days, and difficult to precisely predict. Airlines were already taking different measures on trans-Atlantic flight capacity with changes being rolled out or evaluated in headquarters. The flow of passengers between the U.S. and Europe is not easily delineated. Europe’s strong international airlines and airport hubs mean that Ireland and the U.K., exempt from the ban, will be impacted as passengers use those countries to connect between the U.S. and other European destinations. The Netherlands, which is covered in the ban, has passengers transfer between the U.K. and U.S. Canada is also a hub.

Countries most impacted: Germany, France and Netherlands. The U.K., which is exempt from the ban, is the single largest European market from the U.S., accounting for 31% of flights – 137 a day carrying 31,000 passengers in April 2019. This is almost as big as the next three largest countries combined: Germany (13%), France (11%), and the Netherlands (9%) for a total of 33% or 143 flights a day carrying 35,000 passengers.

The ban directly impacts 266 daily flights from Europe to the U.S. Indirect impacts will affect 173 other daily flights to the U.S. from European countries not covered by the ban, mainly the U.K. as well as Ireland, which had 5-6% of flights and passengers.

Read more at: U.S.-Europe Travel Ban: The Most Impacted Airlines, Countries And Airport Hubs In Trump’s Fight Against Coronavirus

Friday, March 27, 2020

USA: Economy vs. human life is not a moral dilemma - those proposing it are sick in their head

s the coronavirus brings the global economy to a halt, some leaders are seriously suggesting that a few should die so the many can live. Such a suggestion is nothing less than moral bankruptcy, says Martin Gak.

Read more at:
https://www.dw.com/en/opinion-economy-vs-human-life-is-not-a-moral-dilemma/a-52942552

Thursday, March 26, 2020

USA Unemployment: US unemployment skyrockets as coronavirus crashes economy

However, the figures were recorded before Congress signed off on a $2 trillion stimulus package that seeks to help businesses and workers as coronavirus ravages the economy.

Yet it is unlikely that even the biggest government stimulus package in history can stop unemployment from soaring to record highs and the US entering a deep recession.

Commerzbank economist Christoph Bolz said: “The lockdown of the economy is likely to cost more jobs in the coming weeks. We fear that the US unemployment rate will reach a post-war record by mid-year.”

Bolz predicted the US unemployment rate could rise from 3.5 per cent to 11.5 per cent, putting roughly 19m Americans out of a job. That would be higher than the previous post-war record of 10.8 per cent at the end of 1982.

Read more at: US unemployment skyrockets as coronavirus crashes economy : CityAM

Wednesday, March 25, 2020

Tuesday, March 24, 2020

US Economy - Voodoo Economics: Even though stocks jump on hopes for a coronavirus stimulus package - "reality of positive effect is still very nebulous - by Jessica Menton

U.S. stocks advanced Tuesday on hopes that Congress would pass a stimulus bill to shield the economy from the coronavirus pandemic.

The Dow Jones Industrial Average rallied more than 1,600 points after slumping to a three-year low a day earlier. The Standard & Poor’s 500 jumped 7.5%. Stock futures had briefly surged 5%, triggering an automatic shock absorber.

Stocks stabilized overnight after a turbulent start to the week as Congress was nearing a rescue plan that could inject $2 trillion into the economy. The measure is designed to provide direct payments of $1,200 to most Americans, help small businesses shuttered across the country and aid the hard-hit travel industry.

House Speaker Nancy Pelosi said Tuesday morning a deal on an economic stimulus package may be reached in the "next few hours."

Read more at: Dow: Stocks jump on hopes for a coronavirus stimulus package

Monday, March 23, 2020

The Netherlands: Coranavirus Repatriation €10 million fund launched to bring Dutch Citizens back to the Netherlands

Travelers stuck outside of the Netherlands due to flights being halted or severely limited in the wake of the global coronavirus pandemic have a new option to get help to return home. A ten-million euro fund was launched on Monday to provide assistance to stranded fliers, the Ministry of Foreign Affairs announced on Monday.

Essentially, passengers will contribute 300 euros for their own repatriation if returning back from the European Union or 20 countries near the EU. The personal contribution rises to 900 euros for countries further away from the list of EU-adjacent countries.

"We need to do our utmost to get these people home safely," said Stef Blok, the Dutch foreign minister, of the complicated situation. "Because of the huge impact of the coronavirus, this group in particular really has nowhere else to turn."

Read more at: €10 million fund launched to bring people back to Netherlands | NL Times

Saturday, March 21, 2020

EU Unity Needed More than Ever: EU leaders need to be communicating a shared vision to get us through the coronavirus crisis

The role of the European institutions has been seriously questioned during the past two weeks. As a passionate European, this hurts to see. Despite the efforts of the European Commission to help and to intervene in the crisis, member states have decided rather to take a national approach and to focus less on coordination and solidarity. The fact that the European institutions are not being seen as problem solvers tells a relevant and consequential story. Moreover, recent developments speak volumes about how much trust national leaders actually place - undeservingly - in the President of the European Commission, the commissioners and their teams.

The Commision has the opportunity to step up its communications game, since nobody else is really standing up for Europe (locally as well as globally) in these critical times. Before we achieve “Global Europe,” let us secure “Community Europe.” The Commission should act without expecting any further mandate since Europe is, as Emmanuel Macron put it on Monday in regard to France, "at war." The continent is now, after all, the new global "epicentre" of COVID-19, so communication will be paramount and the way the EU does so on key issues will matter.

First, they should concentrate on EU values and delivery amid health concerns. More important than the political relations between member states and the European institutions is the sentiment that European solidarity is as scarce as medical masks and scrubs. The initial response to the Italian call for help is not something Europe should be proud of. The option overwhelmingly embraced by national governments to close borders also highlights the difficulty of coordination at the EU level: when panic comes, we go national. Maybe expectations are too high and the crisis too deep, but, at the end of the day, what remains is the perception that every country is on its own. Perhaps this impression is wrong or will be changed as events unfold. But this should be part of a serious conversation about what European solidarity means in good and, more importantly, bad times. Here again, the European Commission - and empathically, its leader - should lead in the months to come. In times of crisis, people follow examples: think Churchill (alas, Brexit!) not chilling out.

Second, the economy. More broadly, the entire debacle over medical products and equipment brings a key question about economic globalisation and global value chains. The COVID-19 pandemic brings to the fore the idea that Europe cannot externalise everything - a reframing of strategic autonomy to include this is in order. Maintaining production capacity and facilities for essential products is fundamental, and here the strategic interest is more important than the generous principles of open trade and free markets. It is hard to say what will be the dominant view at the end of the crisis, but, at this moment, everyone is asking for expansion of the State and for more state interventions, putting the EU and more widely, the liberal democratic economic model, under stress.

Read more at: EU leaders need to be communicating a shared vision to get us through the coronavirus crisis ǀ View | Euronews

Friday, March 20, 2020

USA Bankrupt: The government’s multitrillion-dollar problem

As forecasts darken with estimates for huge spikes in unemployment and sharp drops in economic growth, economists and Wall Street analysts are warning that even the huge stimulus package now under consideration on Capitol Hill may only make a small dent. Some suggest the number needs to be at least $2 trillion or perhaps far more.

“They should be doing much more than they are thinking about and doing it much quicker, at least $2 trillion with the promise of more to come,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics. “We have whole industries like the restaurant industry that have been obliterated already. Jobless claims next week could be two or three million.”

Shepherdson added that “we could see a drop of 5 million jobs in April. We are going to see numbers we never thought possible. This will be the biggest economic hit that any developed economy has ever seen outside wartime.”

Read more at: The government’s multitrillion-dollar problem - POLITICO

Thursday, March 19, 2020

Spain orders all hotels to close in attempt to stave off coronavirus spread

Spain has ordered all hotels in its territory to close to help stem the spread of coronavirus, under a new measure announced in the state official bulletin on Thursday.

Read more at:
https://www.france24.com/en/20200319-spain-coronavirus-lockdown-hotel-closure-covid19

Wednesday, March 18, 2020

China - US Relations: US-China trade truce at risk as virus hits global economy

A hard-won trade war truce between the US and China is at risk as the coronavirus pandemic rocks the global economy, making it tough for Beijing to fulfil its commitments.

The United States also faces huge disruptions from the deadly virus while a diplomatic spat between Beijing and Washington threatens to derail the phase-one deal that came after more than a year of escalating tensions between the world's two biggest economies.

Concerns are mounting that the conditions of t deal cannot be met as the world economy is threatened by governments taking drastic measures to contain the outbreak, including quarantines, travel bans and closures of public spaces.

"It also is not helping that President Trump recently has been calling the coronavirus the China Virus at his press meetings" 

Read more at: US-China trade truce at risk as virus hits global economy - CNA

Sunday, March 15, 2020

US Economy: Area Convention and Visitors Bureau paints bleak picture on virus' economic impact

 Over 350 teams and 10,000 spectators were supposed to be filling 29 different Springfield gyms this week for the Home School National Basketball Tournament.

But as with many other events, the tourney was cancelled because of the coronavirus threat. Tim Flatt, the Executive Director of the Home School National Tournament, said it was not an easy decision as tourney officials had to weigh the health concerns against the cherished memories for fans and players that would never be realized if the games weren't played.

"The parents think we made a great decision but the kids are heartbroken," Flatt said. "The last thing we wanted to do though was be responsible for bringing the virus to this area. We love Springfield.

We love the leadership and the friendliness of the people and we want to keep a long-term relationship here."

The emotional toll is not the only problem developing though.

According to officials with the Springfield Convention and Visitors Bureau and the Sports Commission, the economic impact from losing the tournament effects everything from the city's potential gas and food revenue to over 7,000 room-nights at local hotels that are lost.

So now the tourism industry will have to wait and see how bad things get.

"I've never seen anything like it," Kimberlin said. "And I hope I never see anything like it again."

"How's this all going to play out?" Kettering added. "It's just uncharted territory."

Read more at: Area Convention and Visitors Bureau paints bleak picture on virus' economic impact

Thursday, March 12, 2020

USA - Wall Street Selloff? ; Dow Futures Point to Friday Bloodbath as Coronavirus Shock Hits Home

The U.S. futures market traded sharply lower overnight, extending a brutal selloff that has engulfed

Wall Street for the better part of three weeks. Dow Jones mini futures contracts were off by as much as 623 points to reach an intraday low of 20,321.00.

At the time of writing, the Dow Jones futures contract was down 522 points, or 2.5%, to 20,563.00.

Wednesday, March 11, 2020

Tourist Industry: Coronavirus concerns, anxiety send US travel industry into a spiral - by Curtis Tate, Dawn Gilbertson and Morgan Hines

A government warning not to board a cruise ship or long flight if you're frail. Convention and event cancellations from coast to coast. Global travel warnings.

The travel and tourism industry has taken hit after hit since the coronavirus outbreak began in January. It's still early for concrete data, but economists and industry executives fear 9/11- or recession-like repercussions. Travel demand plummeted, then and was slow to recover.

"Unfortunately, they're on the front lines on the effect of this virus. They're getting pummeled,'' said Mark Zandi, chief economist for Moody's Analytics.

He said the travel and tourism impact from coronavirus could be greater than the fallout from 9/11, or the 2003 SARS outbreak, because of the global nature of the crisis.

"Global travel is effectively shutting down,'' he said. "It's going to take a while to get it back up and running again. This is going to be a very tough year for the travel and tourism industry.''

The International Air Transport Association, which represents global airlines, last week boosted its estimates of the global financial hit from COVID-19 from $29.3 billion to between $63 billion and $113 billion as the bookings falloff has spread beyond Asia.

That would put airlines in their most precarious position since after the Sept. 11, 2001, terrorist attacks. In the U.S. alone, the travel industry lost $40 billion from 2001 to 2005.

 Read more at: Coronavirus concerns, anxiety send travel industry into a

Monday, March 9, 2020

US Economy Meltdown: Dow plunges over 2,000 points, oil collapses amid price war and coronavirus - by Jonathan Garber

U.S. equity markets tumbled Monday after an oil price war broke out between Saudi Arabia and Russia and amid new cases of coronavirus, especially in America.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES23851.02-2,013.76-7.79%
SP500S&P 5002758.65-213.72-7.19%
I:COMPNASDAQ COMPOSITE INDEX7985.59538-590.02-6.88%




The Dow Jones Industrial Average closed over 2,000 points lower, coming back from a point drop of more than 2,150 points, or 8.2 percent, at session lows while the S&P 500 and Nasdaq Composite were lower by 7.9 percent and 7.2 percent, respectively.

Monday's sharp selloff, which caused the major averages to be temporarily halted due to volatility, caused the New York Federal Reserve to increase its daily cash injections into the banking system to $150 billion from $100 billion.

The stock-market's steep slide comes after a production dispute between OPEC members, led by Saudi Arabia, and Russia sent West Texas Intermediate crude oil, the U.S. benchmark, plunging by as much as 33.8 percent, the most since the outbreak of the 1991 Persian Gulf War, to a low of $27.34 a barrel in overnight trading. The energy component finished the day down 24.59 percent at $31.13 a barrel.

Note EU-Digest: This is what happens when you elect a President who is a complete "ignoramas", lies like there is no tomorrow, says he knows more about the Corona Virus than the medical profession, brags he is the best deal maker in the world, wants only "yes men" in his cabinet, and unfortunately, that is "only the top of the Trump iceberg drama".

Read more at: Dow plunges over 2,000 points, oil collapses amid price war and coronavirus | Fox Business

Sunday, March 8, 2020

Pollution - plastic waste: How Big Oil and Big Soda Kept the Plastics Crisis a Secret for Decades - by Tim Dickinson

Every human on Earth is ingesting nearly 2,000 particles of plastic a week. These tiny pieces enter our unwitting bodies from tap water, food, and even the air, according to an alarming academic study sponsored by the World Wildlife Fund for Nature, dosing us with five grams of plastics, many cut with chemicals linked to cancers, hormone disruption, and developmental delays. Since the paper’s publication last year,

Sen. Tom Udall, a plain-spoken New Mexico Democrat with a fondness for white cowboy hats and turquoise bolo ties, has been trumpeting the risk: “We are consuming a credit card’s worth of plastic each week,” Udall says. At events with constituents, he will brandish a Visa from his wallet and declare, “You’re eating this, folks!”

With new legislation, the Break Free From Plastic Pollution Act of 2020, Udall is attempting to marshal Washington into a confrontation with the plastics industry, and to force companies that profit from plastics to take accountability for the waste they create. Unveiled in February, the bill would ban many single-use plastics and force corporations to finance “end of life” programs to keep plastic out of the environment. “We’re going back to that principle,” the senator tells Rolling Stone. “The polluter pays.”

The battle pits Udall and his allies in Congress against some of the most powerful corporate interests on the planet, including the oil majors and chemical giants that produce the building blocks for our modern plastic world — think Exxon, Dow, and Shell — and consumer giants like Coca-Cola, Nestlé, and Unilever that package their products in the stuff. Big Plastic isn’t a single entity. It’s more like a corporate supergroup: Big Oil meets Big Soda — with a puff of Big Tobacco, responsible for trillions of plastic cigarette butts in the environment every year. And it combines the lobbying and public-relations might of all three.

Americans have occasionally crusaded against “problem plastics” — scapegoating packing peanuts, grocery bags, or drinking straws for the sins of our unsustainable consumer economy. We’ve been slow to recognize that we’re actually in the midst of a plastic pandemic. Over the past 70 years, we’ve gotten hooked on disposable goods and packaging — as plastics became the lifeblood of an American culture of speed, convenience, and disposability that’s conquered the globe. Plastic contains our hot coffee and frozen dinners. It is the material of childhood, from Pampers to Playmobil to PlayStation 4. It cloaks our e-commerce purchases and is woven into our sneakers, fast fashion, and business fleece. Humans are now using a million plastic bottles a minute, and 500 billion plastic bags a year — including those we use to bag up our plastic-laden trash.

But the world’s plastic waste is not so easily contained. Massive quantities of this forever material are spilling into the oceans — the equivalent of a dump-truck load every minute. Plastic is also fouling our mountains, our farmland, and spiraling into an unmitigatable environmental disaster. John Hocevar is a marine biologist who leads the Oceans Campaign for Greenpeace, and spearheaded the group’s response to the BP oil spill in the Gulf.

Increasingly, his work has centered on plastics. “This is a much bigger problem than ‘just’ an ocean issue, or even a pollution issue,” he says. “We’ve found plastic everywhere we’ve ever looked. It’s in the Arctic and the Antarctic and in the middle of the Pacific. It’s in the Pyrenees and in the Rockies. It’s settling out of the air. It’s raining down on us.”

Saturday, March 7, 2020

EU: Hard truths about the eurozone crisis – by Adam Tooze

There has been little honest reflection within the European Commission about the eurozone crisis. Until now.

Read more at:
https://www.socialeurope.eu/hard-truths-about-the-eurozone-crisis

Friday, March 6, 2020

US Economy: Yield Curve Gets Ugly, 10-Year Treasury Yield Falls Below 1% for First Time Ever, 30-Year at Record Low, on Rising Inflation

 Spooked by the Fed’s shock-and-awe surprise 50-basis-point rate cut, the already frazzled markets did a job today. Gold surged nearly 3%. The three major stock indices all swooned nearly 3%. And Treasury yields plunged across the board.

The 10-year Treasury yield plunged from 1.13% pre-announcement to an intraday low of 0.935%, and closed officially at 1.02%. When the yield drops, it means that bond prices rise. In late trading the yield fell below 1% again, and is currently at 0.997% reflected in the chart (data via Investing.com):

At this point, nearly the entire yield curve is below our most doctored and repressed US inflation gauge, the Fed’s preferred “core PCE,” which languishes at 1.6%. And the entire yield curve is far below the Cleveland Fed’s median CPI, which has surged to 2.9%.

The Median CPI is based on the data from the Consumer Price Index (CPI) but removes the extremes of price increases and price decreases, that are often temporary, to reveal underlying inflation trends:

Read more at: Yield Curve Gets Ugly, 10-Year Treasury Yield Falls Below 1% for First Time Ever, 30-Year at Record Low, on Rising Inflation | Wolf Street

Wednesday, March 4, 2020

Wall Street: ‘Head-fake’ stock market rally may become real with interest-rate cuts - by Nigam Arora

Before getting carried away with any rallies, remember when the stock market started going up on the news of coronavirus. The reasoning of Wall Street was that the virus would cause central banks to print more money. (The stock market is addicted to easy money.) Subsequently, Wall Street twisted the news of the coronavirus to claim that it was easing, and the stock market went higher than it was before the news of coronavirus. At that time, I wrote “How an external event could stunt U.S. stocks.”

All prudent stock market investors should consider reading “Prudent investors should look at these four stock charts as coronavirus spreads” and “Stock market investors’ motto — ‘in central banks we trust’ — is still working.”

Comment EU-Digest: Expect what the Federal Reserve and central banks have done in the past: Save stock market investors

Read more at: Head-fake’ stock market rally may become real with interest-rate cuts - MarketWatch

Tuesday, March 3, 2020

Corona Virus and US Economy: U.S. Close Sharply Lower After Surprise Interest Rate Cut -"revealing major weaknesses US Economy"

After seeing considerable volatility early in the session, stocks moved sharply lower over the course of the trading day on Tuesday. With the pullback on the day, the major averages partly offset the strong gains posted in the previous session.

The major averages finished the day firmly in negative territory but off their lows of the session. The Dow tumbled 785.91 points or 2.9 percent to 25,917.41, the Nasdaq plunged 268.07 points or 3 percent to 8,684.09 and the S&P 500 slumped 86.86 points or 2.8 percent to 3,003.37.

The sell-off on Wall Street came after the Federal Reserve announced a surprise decision to cut interest rates by 50 basis points to 1 to 1-1/4 percent.

Read more: U.S. Close Sharply Lower After Surprise Interest Rate Cut | Nasdaq

Corona Virus and US Economy: U.S. Close Sharply Lower After Surprise Interest Rate Cut -"revealing major weaknesses US Economy"

After seeing considerable volatility early in the session, stocks moved sharply lower over the course of the trading day on Tuesday. With the pullback on the day, the major averages partly offset the strong gains posted in the previous session.

The major averages finished the day firmly in negative territory but off their lows of the session. The Dow tumbled 785.91 points or 2.9 percent to 25,917.41, the Nasdaq plunged 268.07 points or 3 percent to 8,684.09 and the S&P 500 slumped 86.86 points or 2.8 percent to 3,003.37.

The sell-off on Wall Street came after the Federal Reserve announced a surprise decision to cut interest rates by 50 basis points to 1 to 1-1/4 percent.

Read more: U.S. Close Sharply Lower After Surprise Interest Rate Cut | Nasdaq

Monday, March 2, 2020

Wall Street: Markets up sharply, rebounding from 7-day, coronaviris-driven decline

Stocks rose sharply on Wall Street Monday, clawing back some of the losses they took in a seven-day rout brought on by worries that the coronavirus outbreak will stunt the global economy.

Read more at:
https://www.cbc.ca/news/business/markets-virus-concerns-1.5482163


Sunday, March 1, 2020

USA-Dow Jones:Stock futures fall 200 points as coronavirus spreads all over the world during the weekend - by Paul Davidson

Dow futures fell more than 200 points Sunday in a sign more turmoil on Wall Street is likely this week amid reports the coronavirus is spreading in the U.S. and globally.

The broader Standard & Poor's 500 stock index and the tech-heavy Nasdaq each fell about 1%.

“Theconcern is just as high as it was last week, so the big swings and volatility are likely here to stay in the near term ” said Ryan Detrick, senior market strategist at LPL Ffinancial.

Read more at: Dow Jones: Stock futures fall 200 points as coronavirus spreads