US Briefing - Thursday 26.03
Headlines
  • Fed’s Powell: May Be In Recession But Can Be Good Rebound
  • US Senate Passes $2Tln Virus Rescue Plan; Sends Bill To House
  • US Braces For Surge In Jobless Claims Amid Coronavirus Fallout
  • US Tsy Sec: Expects Payments Will Come Within Three Weeks
  • G20 Leaders To Convene Remotely As Cases Near Half Million
  • ECB Steps Up Fight With Landmark Move On Bond-Buying Limit
  • ECB’s Vasiliauskas: OMT Bond-Buying Scheme Still In Arsenal
  • S&P: Euro Zone Faces 2% Recession, 10% If Lockdown Lasts
  • BoE To Signal More Radical Action Against Coronavirus Slump
  • UK Chancellor’s Bailout Will Compensate 2Mln Self-Employed
  • UK Retail Sales Weakened Even Before Coronavirus Lockdown
  • Japan Sees Economic Condition 'Severe', Worst View In 7 Years
Commentary
What's In The US $2Tln Stimulus Package And What's Next

The biggest economic stimulus in American history is hurtling toward passage, but Washington’s colossal intervention to save the economy still chooses winners and losers among businesses and American workers.

 

The measure includes expanded worker protections Democrats demanded along with the $500 billion rescue fund Republicans pushed for to help beleaguered US industries. Many Americans will get checks of $1,200 for individuals, $2,400 for married couples.

 

The hospital industry is getting what it asked for — $100 billion in rescue funds. But the oil industry is getting nothing — and neither are the Postal Service and cruise companies. This gargantuan bill won’t make it to President Trump’s desk without some last-minute political angst: Sen. Sanders is threatening the bill because it doesn’t have enough restrictions on the business bailout and Republicans think the unemployment aid is too generous. (Politico – Continue Reading)

Bank Of England, UK To Signal More Radical Action Against Coronavirus Slump

The Bank of England is expected to say on Thursday that it is ready to take further radical action to prop up the economy and Britain’s finance minister will announce help for self-employed workers hit by the coronavirus shutdown.

 

The BoE, which has made two emergency cuts to interest rates this month, boosted its bond-buying program by a further 9% of British economic output, and taken a string of other measures to help lending, is likely to hold off on further action when it makes a statement at 1200 GMT after its scheduled March meeting.

 

But Governor Andrew Bailey, who has been in the job for less than two weeks, and his fellow top BoE officials are likely to say they will take further radical measures - probably another increase in their quantitative easing program - if needed to steer Britain’s economy out of its expected slump. (RTRS – Continue Reading)

ECB Steps Up Virus Fight With Landmark Move On Bond-Buying Limit

The European Central Bank will scrap limits on bond purchases for its 750 billion-euro ($819 billion) emergency program in a landmark decision that gives it almost unlimited firepower to fight the economic fallout from the coronavirus.

 

Government bonds rallied across the euro area on Thursday after the ECB released a legal document that said the so-called issue limits, which constrained sovereign bond-buying to a third of each of its member state’s debt, “should not apply” to its new emergency program.

 

“The Eurosystem will not tolerate any risks to the smooth transmission of its monetary policy in all jurisdictions of the euro area,” according to the document. (BBG – Continue Reading)

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