Closing Wrap - Wednesday 25.03
Headlines
  • Senate Aid Package Quietly Carves Out Billions Intended For Boeing, Officials Say
  • McConnell Predicts Passage Today Of Coronavirus Aid Bill In Senate
  • US Will Approve Some Delays In Tariff Payments Amid Coronavirus Crisis
  • Canadian PM Trudeau Wins Opposition Backing For C$82 Bln Virus Aid Package
  • ECB Open To Launching Draghi’s 2012 Bond-Buying Tool
  • Europe Weighs Suspending Accounting Rules To Aid Virus-Hit Banks
  • German Parliament Suspends Debt Brake To Fight Coronavirus Outbreak
  • Italian PM Conte Promises To Boost Coronavirus Support Package
  • US Set To Press Saudis To Restrain Oil Production Surge Via G-20
  • Gilead Requests FDA Pull Orphan Drug Designation From Potential Coronavirus Drug
Commentary
Overall Orders For Durable Goods Advanced

Overall orders for durable goods advanced, beating expectations for a decline of 1.0pct m/m, after gaining a revised 0.1pct in January. However, analysts are expecting new orders for manufactured goods to decline sharply as strict measures to contain the coronavirus pandemic push the economy into recession. The small negative revision to soft core orders also suggests weaker capex plans, even before the onset of the virus. Continue Reading

Coronavirus Will Cause Unprecedented Shock To The Global Economy

The G-20 economies will experience an unprecedented shock in the first half of this year and will contract in 2020 as a whole, before picking up in 2021. We have revised our growth forecasts downward for 2020 as the rising economic costs of the coronavirus shock and the policy responses to combat the downturn are becoming clearer. We now expect G-20 real GDP to contract by 0.5% in 2020, followed by a pickup to 3.2% growth in 2021. In November last year, before the emergence of the coronavirus, we were expecting G-20 economies to grow by 2.6% in 2020. (Moody’s – Continue Reading)

US Court Orders Trump Admin. To Redo Analysis Of Dakota Access Pipeline

A federal court on Wednesday ordered the Trump administration to conduct a full environmental review of a controversial segment of the Dakota Access Pipeline, which had been a years-long focal point of tribal and environmental activism.

 

The court granted a request by the Standing Rock Sioux tribe, which had petitioned to nullify federal permits for Energy Transfer Partners’ Dakota Access Pipeline on grounds that the Army Corps of Engineers violated the National Environmental Policy Act (NEP) when it issued permits in 2016 without conducting adequate environmental reviews.

 

“This court ultimately concludes that too many questions remain unanswered. Unrebutted expert critiques regarding leak-detection systems, operator safety records, adverse conditions, and worst-case discharge mean that the easement approval remains ‘highly controversial’ under NEPA,” the court ruling says. (National Post – Continue Reading)

Hopes For G20 Coronavirus Summit Truce In China-US War Of Words

China and the United States are expected to call a timeout on their coronavirus blame game and focus on the challenges of the pandemic, when leaders of the Group of 20 hold talks via video conference on Thursday.

 

According to a draft statement to be discussed at the summit, the leaders are expected to agree that the coronavirus is a common threat to humanity and united efforts are required to fight it.

 

All eyes will be on the US and China, which have been locked in a war of words over a pandemic that has already infected more than 409,000 people and killed 18,300.

 

The US has criticised China, where the outbreak was first reported, for its slow initial response and attempts to silence people who raised the alarm about Covid-19, the disease caused by the previously unknown virus. (SCMP – Continue Reading)

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