European Briefing - Thursday 26.03
Headlines
  • US Senate Passes $2T COVID-19 Stimulus Bill; House To Vote Friday 1300GMT
  • Canada PM Trudeau Wins Opposition Backing for $57Bln Virus Aid Package
  • UK COVID-19 Cases Rise By Nearly 1500; US Cases Surge To 68,572 On Mar 25
  • US Putting Pressure On Saudi Arabia To Hold Off On Oil Output Surge
  • Fed’s Powell To Be Interviewed On NBC’s Today Show At 1105GMT
  • RBA Lends $0.050B In 84 Day USD Repo Op; Buys $A3B In 2021-2023 Bonds
  • Japan EconMin To Set Up Panel To Consider COVID-19 Emergency Declaration
  • Bank of Korea To Hold 'Unlimited' Repo Operations For Three Months
  • Singapore's Economy Contracts By 2.2% Y/Y In Q1 Worse Than Expected
  • Japan 40 Year JGB Auction Sees Lowest Bid/Cover Ratio Since Aug 2015
  • Chipmaker Micron Gives Strong Outlook Indicating Demand From Datacentres
  • Nikkei: Apple Weighs Delaying 5G iPhone Launch By Months
  • JPMorgan Equity Derivatives Trading Revenue Is Said To Reach $1.5Bln
  • S&P Cuts Occidental Petroleum, Ford To Junk; GM To Credit Watch Negative
Commentary
Senate Passes $2Tln COVID-19 Stimulus Package

The Senate passed a historic $2 trillion coronavirus relief package Wednesday night, as it tries to stem the destruction the pandemic has brought to American lives and wallets. The bill now heads to the House, which will push to pass it Friday by voice vote as most representatives are out of Washington.

 

The 880-page legislation, crafted at a furious pace in recent days, includes direct payments to individuals, stronger unemployment insurance, loans and grants to businesses and more health care resources for hospitals, states and municipalities. It includes requirements that insurance providers cover preventive services for the coronavirus disease COVID-19.

 

The Senate passed the plan to combat the outbreak as the crisis started to thin its ranks. Sen. Rand Paul, R-Ky., did not vote after testing positive for COVID-19, and neither did GOP Sens. Mitt Romney and Mike Lee of Utah, both in isolation after contact with their colleague. Sen. John Thune, a South Dakota senator and second-ranking Republican, also missed the vote after feeling ill. Senate Majority Leader Mitch McConnell, R-Ky., said the Senate would not return after the vote until April 20. However, he said the chamber would be “nimble.”  (CNBC – Continue Reading)

Singapore’s Economy Plunges In Early Sign Of Pain In Asia

Singapore’s economy contracted the most in a decade in the first quarter, a bellwether for the rest of Asia as the fast-spreading coronavirus continues to shut down vast parts of the world.

 

Gross domestic product fell an annualized 10.6% in the first quarter from the previous three months, far worse than the median forecast of an 8.2% decline in a Bloomberg survey of economists. The government said it now sees a sharp contraction in the economy of 1%-4% for the full year.

 

 “As the global Covid-19 situation is still evolving rapidly, there remains a significant degree of uncertainty over the severity and duration of the global outbreak, and the trajectory of the global economic recovery once the outbreak has been contained,” the Ministry of Trade and Industry said in a statement. “The balance of risks, however, is tilted to the downside.” (Bloomberg – Continue Reading)

Micron Gives Strong Outlook Lifted By Data-Centre Demand

Micron Technology Inc. predicted stronger-than-expected revenue helped by a surge in orders from data centre operators who are building more capacity to deal with the expansion of people working from home.

 

Revenue will be $4.6 billion to $5.2 billion in the fiscal third quarter, which ends in May, Micron said Wednesday in a statement. Analysts had projected $4.88 billion, according to data compiled by Bloomberg. Adjusted earnings will be 55 cents a share, plus or minus 15 cents. Analysts, on average, estimated 52 cents a share.

 

Micron is one of the first chip industry companies to report earnings and give predictions since millions of people have been told to stay home to help slow the spread of the Covid-19 pandemic. That huge shift in the workforce has placed a greater strain on the internet’s infrastructure, spurring demand for Micron’s memory chips and making up for some of the shortfall in orders for smartphone components, as shoppers stay away from stores. (Bloomberg – Continue Reading)

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