Europe and Middle East currently have bulk of COVID-19 cases. But this doesn’t mean that North America is immune.
Trump just announced relief package for businesses. The virus will be causing economic damage well into Q3 figures even if we get this package.
Congress was supposed to have a holiday in a week and unlike the UK with a majority government where they just announced 30 Billion of stimulus on top of the Bank of England cutting rates -0.50% the U.S. politicians have a divided party system which will result in a much smaller package around $100-150 Billion Vs the $500 Billion they are talking about. As if a divided system wasn’t bad enough it is right before an election which won’t be easier to get things passed.
Regarding the Cruiseline industry, they don’t pay taxes so what can the U.S. government really do to help them since cutting taxes for them isn’t possible?
Trump is on his way to meet with his Coronavirus Taskforce.
Also Banking Representatives meet at the White House today to discuss measures. Will they end the meeting with an immediate press release as the Insurance Industry agreed to yesterday or will they simply be floating ideas for now which is more likely?
Nonetheless there will be some mention by Trump that “they are working on things” but Markets are wiser than to fall for things that are said as they are starting to learn and difrentiate between things that are actually done Vs. said.
Tomorrow major tech companies meet at the White House to talk with what can be done.
Full extent of people being sick, being quarantined, being unable to work, being unable to go to school, being unable to travel has yet to be fully appreciated. A credible and convincing program to contain the disease has yet to materialize.
Mnuching just stated taht no market intervention is being planned.
W.H.O finally declared the Coronavirus a Pandemic. Took them long enough. Initially they said that they changed their terminology to remove the word from their scale but with deaths piling up they finally came back to reality. Market ignores the announcement.