Powell says virus poses lasting harm
The U.S. economy faces unprecedented downside risks that could do lasting damage if policy makers don’t rise to the challenge, Federal Reserve Chair Jerome Powell is reported to have said.
Fed Chairman Jerome Powell said more measures will likely be needed to pull the economy out of its downturn.
It was not specified what those measures will be – but pointed to the likely need for more fiscal support. ‘While the economic response has been both timely and appropriately large, it may not be the final chapter,’ the central bank chief is reported to have said.
Other market news
U.S. to get Sanofi Covid vaccine first. It is reported that the U.S. will be first in line to benefit from a vaccine because it was first in line to offer the funding. France unhappy about this.
U.S. – President Trump disagrees with Dr Fauci, the person heading up the U.S. coronavirus task force. Trump said that Fauci’s warnings about opening up the U.S. economy too early were, ‘unacceptable’. Two of the most important people in the world right now arguing, that’s really going to help things.
UK – PHE, Public Health England has approved an antibody test from Roche. This should mean easing lockdown restrictions sooner. However, the UK’s testing record hasn’t been so good so far, we’ll see.
U.S. – some of the world’s biggest and best fund managers are reported to have suggested that stock price valuations are too high! One fund manager is reported to have said, ‘they are the worst since 1999’ – and we all know what happened then. Heed the warning!
Asian markets tracked the fall on Wall Street and European stocks trade broadly lower on Thursday.
U.S. – Trump is reported to have said that, ‘100 trade deals wouldn’t make up for coronavirus’. Is the U.S. – China trade deal under renewed pressure?
Markets generally lost ground yesterday with Dow losing 516 points to close down at at: 23248. Are the markets finally waking up and realising all is not good. It just simply isn’t possible for the U.S. to lose 33+ million jobs in just seven weeks and for markets to shrug it off!
The U.S. economy is facing serious headwinds – in fact most major world economies are facing serious economic headwinds!
Market moving news to watch – Thursday & Friday
Germany – consumer price data due Thursday at 07:00 BST.
U.S. – jobless claims (initial) – due Thursday at: 13:30 – this is the one to watch!
China – retail sales data due overnight.
Germany – GDP data due Friday at: 07:00 BST.
European Union GDP data due Friday at: 10:00 BST.
U.S. – retail sales data due Friday at: 13:30 BST.
U.S. – consumer sentiment data due Friday at: 15:00 BST.