The S&P 500, Dow and Nasdaq tumbled Wednesday as the volatility of the past couple weeks extended further.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Midday Wednesday, the World Health Organization officially designated the coronavirus outbreak a pandemic, as the virus spread across more than 100 countries and infected well over 100,000 individuals. The Dow sank more than 1,200 points following the announcement.” data-reactid=”17″>Midday Wednesday, the World Health Organization officially designated the coronavirus outbreak a pandemic, as the virus spread across more than 100 countries and infected well over 100,000 individuals. The Dow sank more than 1,200 points following the announcement.
Stocks’ afternoon leg lower extended declines from earlier in the regular and overnight sessions. During the pre-market session, stock futures slumped after the White House failed to offer further details on a stimulus package President Donald Trump earlier this week had characterized as “very major.” The measures reportedly in consideration included a payroll tax cut and expanded worker protections, to help counteract any economic fall-out from the ongoing coronavirus outbreak.
While further fiscal stimulus in the U.S. remains a point of uncertainty, overseas, central bankers have unleashed further monetary stimulus aimed at counteracting the economic hit from COVID-19.
The Bank of England on Wednesday announced a surprise half-point interest rate cut at the conclusion of a special meeting, following a similar move from the U.S. Federal Reserve last week.
“Following the spread of COVID-19, risky asset and commodity prices have fallen sharply, and government bond yields reached all-time lows, consistent with a marked deterioration in risk appetite and in the outlooks for global and UK growth,” the BOE said in a statement Wednesday, “Indicators of financial market uncertainty have reached extreme levels.”
The BOE’s move brought the main bank rate down to 0.25%, and was decided unanimously by the bank’s officials.
“Temporary, but significant, disruptions to supply chains and weaker activity could challenge cash flows and increase demand for short-term credit from households and for working capital from companies,” the BOE said. “This economic shock will affect both demand and supply in the economy.”
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="2:48 p.m. ET: Fed boosts size of repo operations even further as COVID-19 outbreak stirs up market turmoil” data-reactid=”25″>2:48 p.m. ET: Fed boosts size of repo operations even further as COVID-19 outbreak stirs up market turmoil
The Federal Reserve Bank of New York announced Wednesday that it is increasing the size of its overnight and term repurchase agreement (repo) operations starting Thursday, according to a statement Wednesday.
The Fed said it would offer at least $175 billion in daily overnight repo operations starting Thursday and continuing through April 13. Previously, the Fed had raised overnight offerings to $150 billion, from $100 billion, from Monday, March 9 through Wednesday. At least $45 billion in two-week term repo operations twice per week during the period will also be offered.
The Fed also announced it will offer three one-month term repo operations starting March 12, with each of these set at at least $50 billion.
“These operations are intended to ensure that the supply of reserves remains ample and to mitigate the risk of money market pressures that could adversely affect policy implementation,” the New York Fed said in the statement. “They should help support smooth functioning of funding markets as market participants implement business resiliency plans in response to the coronavirus.”
The Fed “will continue to adjust repo operations as needed to foster efficient and effective policy implementation consistent with the FOMC directive,” it added.
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="2:20 p.m. ET: Dow drops 20% from recent high during intraday trading,” data-reactid=”32″>2:20 p.m. ET: Dow drops 20% from recent high during intraday trading,
The Dow plummeted more than 20% from its recent closing high of February 12 intraday during Wednesday’s session, crossing below 23,641.13 points.
The 30-stock index would enter a bear market if the Dow holds at or below this level into market close. A bear market is typically defined a drop of at least 20% from a recent closing high, as measured into market close.
Here were the main moves in the market, as of 2:20 p.m. ET:
S&P 500 (^GSPC): -143.67 points (-4.98%) to 2,738.56
Gold (GC=F): -$16.20 (-0.98%) to $1,644.10 per ounce
10-year Treasury (^TNX): up 3.2 bps to yield 0.784%
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="1:57 p.m. ET: U.S. economic activity will contract in Q2, UBS says” data-reactid=”44″>1:57 p.m. ET: U.S. economic activity will contract in Q2, UBS says
UBS downgraded its forecast for U.S. gross domestic product and said it now expects U.S. economic activity will turn negative in the second quarter.
“We revise our US forecast because of the global effects of the coronavirus and the recent collapse in oil prices. The coronavirus has triggered adverse shocks to both supply and demand,” UBS economists led by Seth Carpenter wrote in a note Wednesday.
“We have long noted that cheap oil is a big risk to the US; the hit to investment, employment, and production outweigh the benefit to consumers of energy,” they added. “Our previous soft 2020H1 forecast is now worse, with outright contraction in Q2 and weakness extending into Q3.”
UBS left unrevised its expectation that GDP would grow at a 0.6% seasonally adjusted annualized rate in the first quarter. In the second quarter, GDP will decline by 0.8%, before recovering slightly to 1.2% growth in the third quarter.
“In our base case, we assume that the coronavirus continues on its current course and burns itself out in a couple quarters. Activity in China continues to improve and reaches normal levels in the second half of March,” the analysts said. “We do not assume that the US engages in meaningful restrictions, so the disruptions to the US economy come through supply chain disruptions from imports, from reduced demand, and the fall in oil prices.”
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<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="1:09 p.m. ET: Stocks hold near session lows after WHO declares coronavirus a pandemic” data-reactid=”55″>1:09 p.m. ET: Stocks hold near session lows after WHO declares coronavirus a pandemic
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Each of the three major indices slid further after the World Health Organization officially declared the coronavirus outbreak a pandemic, after weeks of reserving use of the term to describe the global spread of the virus.” data-reactid=”56″>Each of the three major indices slid further after the World Health Organization officially declared the coronavirus outbreak a pandemic, after weeks of reserving use of the term to describe the global spread of the virus.
The Dow tumbled more than 1,250 points, or 5%, while each of the S&P 500 and Nasdaq was off at least 4% following the announcement, which was made during a WHO press conference.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=""Pandemic is not a word to use lightly or carelessly,” said WHO Director-General Tedros Adhanom Ghebreyesus. “It is a word that, if misused, can cause unreasonable fear, or unjustified acceptance that the fight is over, leading to unnecessary suffering and death.”” data-reactid=”58″>”Pandemic is not a word to use lightly or carelessly,” said WHO Director-General Tedros Adhanom Ghebreyesus. “It is a word that, if misused, can cause unreasonable fear, or unjustified acceptance that the fight is over, leading to unnecessary suffering and death.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content=""81 countries have not reported any #COVID19 cases, and 57 countries have reported 10 cases or less,” he added. “We cannot say this loudly enough, or clearly enough, or often enough: all countries can still change the course of this pandemic.”” data-reactid=”59″>”81 countries have not reported any #COVID19 cases, and 57 countries have reported 10 cases or less,” he added. “We cannot say this loudly enough, or clearly enough, or often enough: all countries can still change the course of this pandemic.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="The WHO’s definition of a pandemic was “the worldwide spread of a new disease” as of 2010. The WHO last declared a pandemic in 2009 to describe the H1N1 influenza outbreak. According to the U.S. Center for Disease Control and Prevention, a pandemic “an epidemic that has spread over several countries or continents, usually affecting a large number of people.”” data-reactid=”60″>The WHO’s definition of a pandemic was “the worldwide spread of a new disease” as of 2010. The WHO last declared a pandemic in 2009 to describe the H1N1 influenza outbreak. According to the U.S. Center for Disease Control and Prevention, a pandemic “an epidemic that has spread over several countries or continents, usually affecting a large number of people.”
“We have never before seen a pandemic sparked by a #coronavirus.
And we have never before seen a pandemic that can be controlled at the same time.
WHO has been in full response mode since we were notified of the first cases”-@DrTedros#COVID19
Losses in the three major indices accelerated mid-morning, with the Dow shedding more than 1,000 points.
Declines in the 30-stock index were led by Boeing and Dow Inc., while UnitedHealth Group was the only component narrowly in the green. In the S&P 500, the Financials and Real Estate sectors lagged.
Here were the main moves in markets, as of 10:54 a.m. ET:
S&P 500 (^GSPC): -105.72 points (-3.67%) to 2,776.51
Dow (^DJI): -1,008.74 points (-4.03%) to 24,009.42
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="10:35 a.m. ET: Boeing to draw down credit line as virus woes reverberate” data-reactid=”76″>10:35 a.m. ET: Boeing to draw down credit line as virus woes reverberate
“After 11 years, 13% annualized earnings growth and 16% annualized trough-to-peak appreciation, we believe the S&P 500 bull market will soon end,” Goldman said in a note to clients published Wednesday.
The firm said it expects year-over-year earnings per share (EPS) for S&P 500 companies will ultimately be $157 in 2020, marking a decline of 5% versus last year. This was the second time Goldman Sachs slashed its aggregate S&P 500 EPS forecast in two weeks.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“Drivers of our reduced EPS estimate include lower crude oil prices and interest rates that diminish Energy and Financial company profits,” the strategists led by David Kostin said in a note. “Domestic business activity outside of those sectors is also likely to be weaker than we originally forecast, as underscored by reduced or withdrawn guidance from a number of firms in recent weeks.”” data-reactid=”84″>“Drivers of our reduced EPS estimate include lower crude oil prices and interest rates that diminish Energy and Financial company profits,” the strategists led by David Kostin said in a note. “Domestic business activity outside of those sectors is also likely to be weaker than we originally forecast, as underscored by reduced or withdrawn guidance from a number of firms in recent weeks.”
The firm mapped out a scenario in which the S&P 500 drops about 15% to 2,450 by mid-2020, as falling growth expectations and consumer confidence weighs on valuations. By the end of 2020, however, the strategists said a recovery in earnings and sentiment will help lift the S&P 500 to 3,200.
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:31 a.m. ET: Stocks open lower as traders hope for stimulus to offset hit from coronavirus” data-reactid=”88″>9:31 a.m. ET: Stocks open lower as traders hope for stimulus to offset hit from coronavirus
Here were the main moves in markets, as of 9:31 a.m. ET:
S&P 500 (^GSPC): -75.57 points (-2.62%) to 2,806.66
<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="9:18 a.m. ET: Warren Buffett reacts to the stock market rout, oil crash amid the coronavirus outbreak” data-reactid=”98″>9:18 a.m. ET: Warren Buffett reacts to the stock market rout, oil crash amid the coronavirus outbreak
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Via Andy Serwer, Yahoo Finance Editor in Chief” data-reactid=”99″>Via Andy Serwer, Yahoo Finance Editor in Chief
Not as bad as 2008 or 1987.
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="That’s what Warren Buffett said about the current coronavirus, oil shock market maelstrom.” data-reactid=”101″>That’s what Warren Buffett said about the current coronavirus, oil shock market maelstrom.
“If you stick around long enough, you’ll see everything in markets,” Buffett said. “And it may have taken me to 89 years of age to throw this one into the experience, but the markets, if you have to be open second by second, they react to news in a big time way.”
<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="READ MORE HERE” data-reactid=”103″>READ MORE HERE
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8:30 a.m. ET: Core consumer price index rose the most in five months ahead of coronavirus impact
An index tracking trends in domestic consumer prices rose faster than expected in February before COVID-19 became more widespread in the U.S.
Headline CPI rose 0.1% month on month and 2.3% over last year, or slightly faster than the 0.0% month on month pace and 2.2% year over year rate expected.
Excluding more volatile food and energy prices, the CPI rose 0.2% over last month and 2.4% over last year, with the latter representing the fastest pace of gains in five months.
“Net, net, there’s still inflation in February but maybe not for much longer with the spreading coronovirus fears darkening the economic outlook,” Chris Rupkey, chief financial economist at MUFG Union Bank, said in a note. “The wheels of the economy can’t continue to turn as fast if the whole country avoids social interaction and tries to live online through the Internet. With less store traffic, merchants may have to actually cut prices instead of raising them.”
While February’s CPI data highlights a firming of inflationary trends, it is unlikely to influence the Federal Reserve’s future decisions, given it captured the period before the outbreak meaningfully escalated at the end of the month.
“The Fed is more likely to move on March 18 in anticipation of the COVID-19 hit, not reaction to last month’s data,” Scott Clemons, chief investment strategist of private banking for Brown Brothers Harriman, said in an email to Yahoo finance. “If anything, inflation is almost certain to move lower over the next few months as the fall in energy prices is more fully reflected.”
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7:48 a.m. ET: Stock futures tumble as coronavirus fears linger
Stock futures sank again Wednesday morning, continuing a run of volatility that has sent risk assets into a tailspin.
Here were the main moves in markets, as of 7:49 a.m. ET:
S&P 500 futures (ES=F): 2,793.50, down 72.25 points or -2.52%
Dow futures (YM=F): 24,260.00, down 589 points or -2.37%
Nasdaq futures (NQ=F): 8,143, down 188.5 points or -2.26%
Ten-year Treasury note: yielding 0.707%, down 4.5 basis points
NEW YORK, NEW YORK – MARCH 10: Traders work on the floor of the New York Stock Exchange (NYSE) on March 10, 2020 in New York City. After losing nearly 8 percent in a market rout yesterday, the Dow Jones Industrial Average was up over 700 points in morning trading as investors look to a possible tax cut and other measures by the Trump administration to combat the coronavirus. (Photo by Spencer Platt/Getty Images)
“Communication is one of the most important skills you require for a successful life.” — Catherine Pulsifer, author.
I’m one hundred percent in agreement with Pulsifer, which is why my evaluation of candidates begins with their writing skills. If a candidate’s writing skills and verbal communication skills, which I’ll assess when interviewing, aren’t well above average, I’ll pass on them regardless of their skills and experience.
Why?
Because business is fundamentally about getting other people to do things—getting employees to be productive, getting customers to buy your products or services, and getting vendors to agree to a counteroffer price. In business, as in life in general, you can’t make anything happen without effective communication; this is especially true when job searching when your writing is often an employer’s first impression of you.
Think of all the writing you engage in during a job search (resumes, cover letters, emails, texts) and all your other writing (LinkedIn profile, as well as posts and comments, blogs, articles, tweets, etc.) employers will read when they Google you to determine if you’re interview-worthy.
With so much of our communication today taking place via writing (email, text, collaboration platforms such as Microsoft Teams, Slack, ClickUp, WhatsApp and Rocket.Chat), the importance of proficient writing skills can’t be overstated.
When assessing a candidate’s writing skills, you probably think I’m looking for grammar and spelling errors. Although error-free writing is important—it shows professionalism and attention to detail—it’s not the primary reason I look at a candidate’s writing skills.
The way someone writes reveals how they think.
Clear writing = Clear thinking
Structured paragraphs = Structured mind
Impactful sentences = Impactful ideas
Effective writing isn’t about using sophisticated vocabulary. Hemingway demonstrated that deceptively simple, stripped-down prose can captivate readers. Effective writing takes intricate thoughts and presents them in a way that makes the reader think, “Damn! Why didn’t I see it that way?” A good writer is a dead giveaway for a good thinker. More than ever, the business world needs “good thinkers.”
Therefore, when I come across a candidate who’s a good writer, hence a good thinker, I know they’re likely to be able to write:
Emails that don’t get deleted immediately and are responded to
Simple, concise, and unambiguous instructions
Pitches that are likely to get read
Social media content that stops thumbs
Human-sounding website copy
Persuasively, while attuned to the reader’s possible sensitivities
Now, let’s talk about the elephant in the room: AI, which job seekers are using en masse. Earlier this year, I wrote that AI’s ability to hyper-increase an employee’s productivity—AI is still in its infancy; we’ve seen nothing yet—in certain professions, such as writing, sales and marketing, computer programming, office and admin, and customer service, makes it a “fewer employees needed” tool, which understandably greatly appeals to employers. In my opinion, the recent layoffs aren’t related to the economy; they’re due to employers adopting AI. Additionally, companies are trying to balance investing in AI with cost-cutting measures. CEOs who’ve previously said, “Our people are everything,” have arguably created today’s job market by obsessively focusing on AI to gain competitive advantages and reduce their largest expense, their payroll.
It wouldn’t be a stretch to assume that most AI usage involves generating written content, content that’s obvious to me, and likely to you as well, to have been written by AI. However, here’s the twist: I don’t particularly care.
Why?
Because the fundamental skill I’m looking for is the ability to organize thoughts and communicate effectively. What I care about is whether the candidate can take AI-generated content and transform it into something uniquely valuable. If they can, they’re demonstrating the skills of being a good thinker and communicator. It’s like being a great DJ; anyone can push play, but it takes skill to read a room and mix music that gets people pumped.
Using AI requires prompting effectively, which requires good writing skills to write clear and precise instructions that guide the AI to produce desired outcomes. Prompting AI effectively requires understanding structure, flow and impact. You need to know how to shape raw information, such as milestones throughout your career when you achieved quantitative results, into a compelling narrative.
So, what’s the best way to gain and enhance your writing skills? As with any skill, you’ve got to work at it.
Two rules guide my writing:
Use strong verbs and nouns instead of relying on adverbs, such as “She dashed to the store.” instead of “She ran quickly to the store.” or “He whispered to the child.” instead of “He spoke softly to the child.”
Avoid using long words when a shorter one will do, such as “use” instead of “utilize” or “ask” instead of “inquire.” As attention spans get shorter, I aim for clarity, simplicity and, most importantly, brevity in my writing.
Don’t just string words together; learn to organize your thoughts, think critically, and communicate clearly. Solid writing skills will significantly set you apart from your competition, giving you an advantage in your job search and career.
Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.
MONTREAL – Politics, public opinion and salary hikes south of the border helped push Air Canada toward a deal that secures major pay gains for pilots, experts say.
Hammered out over the weekend, the would-be agreement includes a cumulative wage hike of nearly 42 per cent over four years — an enormous bump by historical standards — according to one source who was not authorized to speak publicly on the matter. The previous 10-year contract granted increases of just two per cent annually.
The federal government’s stated unwillingness to step in paved the way for a deal, noted John Gradek, after Prime Minister Justin Trudeau made it plain the two sides should hash one out themselves.
“Public opinion basically pressed the federal cabinet, including the prime minister, to keep their hands clear of negotiations and looking at imposing a settlement,” said Gradek, who teaches aviation management at McGill University.
After late-night talks at a hotel near Toronto’s Pearson airport, the country’s biggest airline and the union representing 5,200-plus aviators announced early Sunday morning they had reached a tentative agreement, averting a strike that would have grounded flights and affected some 110,000 passengers daily.
The relative precariousness of the Liberal minority government as well as a push to appear more pro-labour underlay the prime minister’s hands-off approach to the negotiations.
Trudeau said Friday the government would not step in to fix the impasse — unlike during a massive railway work stoppage last month and a strike by WestJet mechanics over the Canada Day long weekend that workers claimed road roughshod over their constitutional right to collective bargaining. Trudeau said the government respects the right to strike and would only intervene if it became apparent no negotiated deal was possible.
“They felt that they really didn’t want to try for a third attempt at intervention and basically said, ‘Let’s let the airline decide how they want to deal with this one,'” said Gradek.
“Air Canada ran out of support as the week wore on, and by the time they got to Friday night, Saturday morning, there was nothing left for them to do but to basically try to get a deal set up and accepted by ALPA (Air Line Pilots Association).”
Trudeau’s government was also unlikely to consider back-to-work legislation after the NDP tore up its agreement to support the Liberal minority in Parliament, Gradek said. Conservative Leader Pierre Poilievre, whose party has traditionally toed a more pro-business line, also said last week that Tories “stand with the pilots” and swore off “pre-empting” the negotiations.
Air Canada CEO Michael Rousseau had asked Ottawa on Thursday to impose binding arbitration pre-emptively — “before any travel disruption starts” — if talks failed. Backed by business leaders, he’d hoped for an effective repeat of the Conservatives’ move to head off a strike in 2012 by legislating Air Canada pilots and ground crew to stick to their posts before any work stoppage could start.
The request may have fallen flat, however. Gradek said he believes there was less anxiety over the fallout from an airline strike than from the countrywide railway shutdown.
He also speculated that public frustration over thousands of cancelled flights would have flowed toward Air Canada rather than Ottawa, prompting the carrier to concede to a deal yielding “unheard of” gains for employees.
“It really was a total collapse of the Air Canada bargaining position,” he said.
Pilots are slated to vote in the coming weeks on the four-year contract.
Last year, pilots at Delta Air Lines, United Airlines and American Airlines secured agreements that included four-year pay boosts ranging from 34 per cent to 40 per cent, ramping up pressure on other carriers to raise wages.
After more than a year of bargaining, Air Canada put forward an offer in August centred around a 30 per cent wage hike over four years.
But the final deal, should union members approve it, grants a 26 per cent increase in the first year alone, retroactive to September 2023, according to the source. Three wage bumps of four per cent would follow in 2024 through 2026.
Passengers may wind up shouldering some of that financial load, one expert noted.
“At the end of the day, it’s all us consumers who are paying,” said Barry Prentice, who heads the University of Manitoba’s transport institute.
Higher fares may be mitigated by the persistence of budget carrier Flair Airlines and the rapid expansion of Porter Airlines — a growing Air Canada rival — as well as waning demand for leisure trips. Corporate travel also remains below pre-COVID-19 levels.
Air Canada said Sunday the tentative contract “recognizes the contributions and professionalism of Air Canada’s pilot group, while providing a framework for the future growth of the airline.”
The union issued a statement saying that, if ratified, the agreement will generate about $1.9 billion of additional value for Air Canada pilots over the course of the deal.
Meanwhile, labour tension with cabin crew looms on the horizon. Air Canada is poised to kick off negotiations with the union representing more than 10,000 flight attendants this year before the contract expires on March 31.
This report by The Canadian Press was first published Sept. 16, 2024.
HALIFAX – Ottawa is negotiating a $500-million bailout for Nova Scotia’s privately owned electric utility, saying the money will be used to prevent a big spike in electricity rates.
Federal Natural Resources Minister Jonathan Wilkinson made the announcement today in Halifax, saying Nova Scotia Power Inc. needs the money to cover higher costs resulting from the delayed delivery of electricity from the Muskrat Falls hydroelectric plant in Labrador.
Wilkinson says that without the money, the subsidiary of Emera Inc. would have had to increase rates by 19 per cent over “the short term.”
Nova Scotia Power CEO Peter Gregg says the deal, once approved by the province’s energy regulator, will keep rate increases limited “to be around the rate of inflation,” as costs are spread over a number of years.
The utility helped pay for construction of an underwater transmission link between Newfoundland and Nova Scotia, but the Muskrat Falls project has not been consistent in delivering electricity over the past five years.
Those delays forced Nova Scotia Power to spend more on generating its own electricity.
This report by The Canadian Press was first published Sept. 16, 2024.
