Coronavirus impact: Evidence mounts that the global recession is already here

global recession. The breadth of the collapse is beginning to appear in the initial trickle of economic data across the world, revealing a cratering of trade, reined-in business investment, cowering consumers and surging unemployment that’s sparing few industries.The hit to demand is visible on the world’s oceans, where a measure of U.S. export volumes in […]

FOREX-Dollar strength consolidates as global recession looms

CBA forecasts a 200,000 drop in employment, higher than the median estimate of a 100,000 drop according to a Reuters’ survey of economists – though like most, they expect far worse to come as the data catches up to the damage in the real economy.

Global investors clamour for safe haven in UK government bonds

“The UK is still a large market for bonds and sterling is still a reserve currency behind the dollar and the euro. And the UK is not different to any other country in needing extra funds to support extra spending. It is not an outlier,” he said.

IMF chief flags up grim global economic forecast

The IMF managing director said there was still “extraordinary uncertainty” about the depth and duration of a crisis that began in the Chinese city of Wuhan in January. She added that it was already clear that global growth would turn sharply negative in 2020. “In fact, we anticipate the worst economic fallout since the Great […]

Oil rises as hopes build for global production cut

Oil prices clawed their way into positive territory on Tuesday as hopes that the world’s biggest producers will agree to cut output outweighed analyst fears that a global recession in the wake of the coronavirus crisis could be deeper than expected.Brent crude was up 83 cents, or 2.5 per cent, at $33.88 a barrel by […]

Growth recession is upon India, says DK Joshi of CRISIL

Fitch Ratings and CRISIL. Fitch Ratings recently slashed India’s growth forecast for FY21 to a 30-year low of 2%; Moody’s, too, revised it to 2.5%, citing further spread of virus and extension of the lockdown period. CRISIL, an S&P Global Ratings’s arm, also revised its reading 170 basis points to 3.5% from 5.2%.Dharmakirti Joshi, the […]

In Letter to Shareholders, JP Morgan CEO Jamie Dimon Says Coronavirus Economic Downturn Will be Similar to 2008 Recession

Economists for the Federal Reserve Bank of St. Louis predicted more dismal numbers. Last week, they projected 47 million job losses and an unemployment rate just above 32 percent in an analysis of the situation. Those numbers were worse than the 30 percent unemployment predicted by the bank’s president James Bullard days earlier.

Jamie Dimon sees ‘bad recession’ and echoes of 2008 crisis ahead

By Michelle F. Davis Jamie Dimon said the coronavirus pandemic will lead to a major economic downturn and stress mirroring the meltdown that nearly brought down the U.S. financial system in 2008. “At a minimum, we assume that it will include a bad recession combined with some kind of financial stress similar to the global […]

GLOBAL MARKETS-Markets fall as virus woes strike again

“Don’t fight the Fed” is the old adage, but markets seem to be doing their best to do that anyway – a new set of Fed FX swap lines on Tuesday was meant to reassure markets that the U.S. central bank was there to ensure an adequate supply of dollars.

Oil  Rises as Hopes Build for Global Production Cut

“With 28 million bpd of oversupply in the oil market in April and 21 million bpd in May, the global coordinated production cuts that are really needed may be too large for the producers to accept; perhaps twice as large as the numbers being discussed,” said Rystad Energy’s Bjornar Tonhaugen.