The new recession is arriving?
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https://www.bbc.com/news/business-51503542
“The German economy had another very weak three months at the end of last year, according to official figures.”
And the economic prospect of the effects of coronavirus adds only more to the pessimistic prognosis
If China catches a cold – the whole world coughs and sneezes
https://www.theguardian.com/business/2020/feb/24/stock-markets-coronavirus-italy-airlines
The FTSE 100 index in London lost 247 points to 7,156.83, a 3.3% drop and its worst worst percentage fall since January 2016.
US stock markets had their worst day in two years.
The Italian stock market tumbled by almost 1,500 points to 23,288.35, a 6% slide, putting it on track for its worst day since 2016. Elsewhere in Europe, Germany’s Dax index fell 3.5% while France’s Cac 40 lost 3.7%.
In Asia, Hong Kong’s Hang Seng index fell 1.8%, while South Korea’s Kospi slumped 3.9%.Richard Wollf on the next economic crisis
China is the world factory, if they stop producing commodities the whole world would be affected
It looks like capitalism also got the Coronavirus, all the markets around the world are in crisis, it is going to be a very bumpy ride
https://www.bbc.com/news/business-51796806
Shares around the world had their worst day since the financial crisis with the dramatic falls leading to the day being dubbed “Black Monday”.
The main financial indexes in the US closed down by more than 7%, while London’s index of top shares ended the day nearly 8% lower.
Similar drops took place across Europe and Asia as a row between Russia and Saudi Arabia saw oil prices plunge.
Shares were already reeling from fears of the impact of coronavirus.
Analysts described the market reaction as “utter carnage”.Is the projected fall in oil costs in the price war going to have an impact?
United Arab Emirates followed Saudi Arabia in promising to raise oil output to a record high.
https://www.aljazeera.com/ajimpact/uae-joins-saudi-arabia-opening-oil-taps-200311223745872.html
“helicopter money,” or free cash for everyone as if it were dropped from the sky. After years of the idea occupying the margins of economic thought, it is gaining currency among economists and policymakers as a cure for coronavirus.
The USA settles upon a certain amount of helicoptering
https://www.bbc.com/news/business-51932403
“Treasury Secretary Steven Mnuchin says he supports sending money directly to Americans as part of a $1tn (£830bn) stimulus aimed at averting an economic crisis caused by the coronavirus.
“We’re looking at sending cheques to Americans immediately,” he said.
The $250bn (£207bn) in cheques are part of a huge aid package which the White House is discussing with Congress.”UK Chancellor Rishi Sunak promised grants, relief from business rates and government-backed loans worth more than £300bn.
France announced it would guarantee hundreds of billions of euros worth of loans, alongside a 45 billion euro package to help businesses and affected employees.
The North Sea oil and gas industry is in a “paper-thin” position as global oil markets plummet towards 18-year lows amid the UK’s economic emergency.
An industry trade body said investment in the ageing oil basin, which supports about 250,000 jobs in the UK, was expected to slump by almost a third because of the market collapse.
Large oil companies are expected to axe their spending plans to weather the latest market rout, which threatens to halve the revenue from the barrels of oil they produce.The perfect storm
So as best I can tell this morning we now have:
– A pandemic crisis
– A supply chain crisis
– A demand crisis
– A labor market crisis
– An equity market crisis
– An oil price crisis
– A brewing bond market crisis
– A developing currency crisis
– A potential housing market crisis— Shawn Donnan (@sdonnan) March 18, 2020
Here from today’s Times, for what they’re worth, are the guesses, more or less informed, of economists employed investment banks and advisers (and so not entirely independent and objective):
“The coronavirus outbreak could knock Britain’s GDP by 15 per cent in the second quarter of the year and plunge the global economy into its worst downturn since the Great Depression of the 1930s, economists have warned.
Shutting down parts of the economy to fight the pandemic will make businesses go bust and bring widespread job losses, analysts at Jefferies, the investment bank, said. At its worst, GDP in Britain and the eurozone could contract by 15 per cent before a recovery begins in the second half of the year. David Owen and Marchel Alexandrovic, European economists at Jefferies, said: “Such quarterly declines in GDP are unprecedented, certainly in living. memory, and will lead to further corporate failures and economic hardship.”
The impact of Covid-19 on the world economy was more pronounced “than anything the world has seen since the 1930s”, Erik Britton, economist at Fathom Consulting, said. Global GDP fell by about 15 per cent between 1929 and 1932 during the Great Depression.
Mr Britton added: “The recession should be short-lived, with a strong recovery in prospect towards the end of 2020 and into 2021. But that recovery is far from certain and a more protracted depression cannot be ruled out.””If there is another prolonged depression, it will not have been caused by the internal workings of the capitalist economy but by a factor outside the capitalist economy itself, i.e. the coronavirus epidemic and the measures governments took to deal with it. A reminder that crises can also be caused by such outside factors.
If there is another prolonged depression, it will not have been caused by the internal workings of the capitalist economy but by a factor outside the capitalist economy itself, i.e. the coronavirus epidemic and the measures governments took to deal with it. A reminder that crises can also be caused by such outside factors.
This is correct
How a so-called strong economy like the USA entered into a deep crisis within two months? All the lies are being seen now including the false rate of unemployment
“the government could think a bit further outside the box and turn insolvent airlines, oil companies, and banks into public utilities. It could require them to serve the people and the economy rather than just maximizing the short-term profits of their shareholders.”
Is this going to be a new movement for nationalization and state-control and government ownership for America. Has “free enterprise” now failed in the minds of its citizens?
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