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Global markets get lift from Fed's promise of unlimited support for the economy – CNN

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The decision to buy unlimited amounts of government bonds was part of a much bigger package of extraordinary measures announced by the Fed, which also included a promise to launch a Main Street lending program.
US stocks were poised to open dramatically lower prior to the announcement from the central bank, which briefly lifted European stocks and oil prices. The Dow, S&P 500 and Nasdaq pulled back some of their losses, but still started the trading session in negative territory.
“It has become clear that our economy will face severe disruptions,” the Federal Reserve said in a statement. “Aggressive efforts must be taken across the public and private sectors to limit the losses to jobs and incomes and to promote a swift recovery once the disruptions abate.”
Global stock markets were hammered earlier on Monday after US lawmakers failed to reach agreement on a massive stimulus package meant to help Americans handle the coronavirus pandemic and as authorities around the world took ever more draconian measures to restrict movement and public gatherings.
Markets in Australia and South Korea’s dropped more than 5%. Hong Kong’s Hang Seng Index (HSI) was down 4.9% while China’s Shanghai Composite (SHCOMP) shed 3.1%.
In Europe, London’s FTSE 100 (UKX) was down 2.7% following the Fed announcement, while Germany’s DAX (DAX) and France’s CAC 40 (CAC40) were off by less than 2%.
A fresh wave of coronavirus job losses is about to come crashing down
There are now more than 339,000 coronavirus cases worldwide — forcing further travel restrictions, shut downs and disruptions for businesses.
New measures to combat the virus have been imposed in Australia, New Zealand and India, and the United Kingdom is considering whether further action is needed after pubs and restaurants were told to close on Friday but large numbers of people continued to gather in public spaces.
In Italy, where more people have died from coronavirus than anywhere else, the government ordered all “non essential factories” to close. That restriction applies to any company not involved in producing food or medical equipment. Pharmacies, food stores, financial services and public transportation will remain open.
In the United States, progress on a massive stimulus package was halted Sunday, sparking fresh uncertainty over whether and when lawmakers will reach a bipartisan deal to deliver economic relief.
Senate Democrats said they have “serious issues” with a package being pushed by Republican Senate Majority Leader Mitch McConnell. On Sunday, Democratic sources said they had uncovered numerous problems with provisions dealing with aid to workers and loan assistance to businesses. While negotiations continue in the Senate, Democratic Speaker Nancy Pelosi said that the House will introduce its own bill.
30 days that brought the world to the brink of a depression30 days that brought the world to the brink of a depression
“The rapid spread [of the coronavirus] has triggered unprecedented draconian containment measures,” Stephen Innes, global chief markets strategist at AxiCorp, wrote in a research note. “All the while Congress, is dilly dallying on an aid plan.”
US oil prices, meanwhile, fell again after a 30% plunge last week. WTI crude futures were down 1% at $22.36 a barrel while Brent crude fell 4.5%.
Japan’s Nikkei 225 (N225) was an outlier among major global stock markets, gaining 2% after the International Olympic Committee said Sunday it is considering postponing — but not canceling — this summer’s Olympic Games in Tokyo.
International pressure to delay the event is growing. Canada said it won’t be sending teams to the Olympics this summer, and asked for the games to be postponed by one year.
— Jill Disis contributed to this report.

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Global economy has entered a recession amid coronavirus pandemic, says IMF head – Global News

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The head of the International Monetary Fund said Friday it is clear that the global economy has now entered a recession that could be as bad or worse than the 2009 downturn.

IMF Managing Director Kristalina Georgieva said the 189-nation lending agency was forecasting a recovery in 2021, saying it could be a “sizable rebound.” But she said this would only occur if nations succeed in containing the coronavirus and limiting the economic damage.

“A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery but erode the fabric of our societies,” she told reporters at a news conference following a telephone conference with finance officials from the 24 nations that make up the IMF’s policy-setting panel.


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North American stocks tank after 3-day rebound as coronavirus fears grow

She said the IMF was updating its economic outlook now and it would be released in a few weeks, allowing the agency more time to assess the economic impacts of the virus.

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Asked if the United States was now in recession, she noted that Federal Reserve Chairman Jerome Powell had said Thursday that America “ may well be in a recession.” She said she believed not only the United States but many other advanced economies and a number of developing countries had already entered downturns.






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Coronavirus outbreak: Biden calls out ‘false choice’ between economy and health


Coronavirus outbreak: Biden calls out ‘false choice’ between economy and health

Georgieva said lower income countries were being hit hard by the spreading coronavirus, with 81 nations now seeking support from an IMF emergency financing program being used to provide aid.

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She announced that Kyrgyzstan would receive the first IMF support package of $120.9 million to deal with adverse effects of the virus.

She repeated a pledge that the IMF stood ready to make all $1 trillion of its lending resources available to countries being hit by the virus.


READ MORE:
EU orders economic recovery plan as countries remain divided on coronavirus response

“We have seen an extraordinary spike in requests for IMF emergency financing,” Georgieva said. “We are being asked by our members to do more, do it better and do it faster than ever before.”

She said to meet the increased demand she would seek to double the emergency financing program and simplify the procedures countries will have to go through to obtain IMF support. She said the IMF was also looking for ways to expand its current lending facilities to provide more help to countries.

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Georgieva said the IMF also wanted to find ways to provide more debt relief to the poorest countries.






3:18
Coronavirus outbreak: Morneau outlines measures feds taking to mitigate economic impact of COVID-19


Coronavirus outbreak: Morneau outlines measures feds taking to mitigate economic impact of COVID-19

She said she planned to discuss these issues with the IMF’s executive board with the goal of putting together a package of reforms that could be presented at the IMF’s spring meetings in mid-April. Because of the virus, the spring meetings of both the IMF and its sister lending organization, the World Bank, will be virtual this year instead of meetings in Washington.

“IMF efforts that start to offer debt relief to the poorest countries and that increase financing to help prevent a global financial crisis are really positive and needed steps,” said Eric LeCompte, the executive director Jubilee USA, a group that campaigns for increased assistance for low income countries.

© 2020 The Canadian Press

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IMF says global economy already in recession – The Globe and Mail

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IMF chief Kristalina Georgieva said emerging market countries need at least $2.5 trillion in financial aid.

BRENDAN SMIALOWSKI/AFP/Getty Images

The head of the International Monetary Fund said Friday it is clear that the global economy has now entered a recession that could be as bad or worse than the 2009 downturn.

IMF Managing Director Kristalina Georgieva said the 189-nation lending agency was forecasting a recovery in 2021, saying it could be a “sizable rebound.” But she said this would only occur if nations succeed in containing the coronavirus and limiting the economic damage.

“A key concern about a long-lasting impact of the sudden stop of the world economy is the risk of a wave of bankruptcies and layoffs that not only can undermine the recovery but erode the fabric of our societies,” she told reporters at a news conference following a telephone conference with finance officials from the 24 nations that make up the IMF’s policy-setting panel.

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International Monetary Fund Managing Director Kristalina Georgieva said ‘it is clear’ that world has ‘entered a recession as bad or worse’ than the global financial crisis in 2009. Reuters

She said the IMF was updating its economic outlook now and it would be released in a few weeks, allowing the agency more time to assess the economic impacts of the virus.

Asked if the United States was now in recession, she noted that Federal Reserve Chairman Jerome Powell had said Thursday that America “ may well be in a recession.” She said she believed not only the United States but many other advanced economies and a number of developing countries had already entered downturns.

Georgieva said lower income countries were being hit hard by the spreading coronavirus, with 81 nations now seeking support from an IMF emergency financing program being used to provide aid.

She announced that Kyrgyzstan would receive the first IMF support package of $120.9 million to deal with adverse effects of the virus.

She repeated a pledge that the IMF stood ready to make all $1 trillion of its lending resources available to countries being hit by the virus.

“We have seen an extraordinary spike in requests for IMF emergency financing,” Georgieva said. “We are being asked by our members to do more, do it better and do it faster than ever before.”

She said to meet the increased demand she would seek to double the emergency financing program and simplify the procedures countries will have to go through to obtain IMF support. She said the IMF was also looking for ways to expand its current lending facilities to provide more help to countries.

Story continues below advertisement

Georgieva said the IMF also wanted to find ways to provide more debt relief to the poorest countries.

She said she planned to discuss these issues with the IMF’s executive board with the goal of putting together a package of reforms that could be presented at the IMF’s spring meetings in mid-April. Because of the virus, the spring meetings of both the IMF and its sister lending organization, the World Bank, will be virtual this year instead of meetings in Washington.

“IMF efforts that start to offer debt relief to the poorest countries and that increase financing to help prevent a global financial crisis are really positive and needed steps,” said Eric LeCompte, the executive director Jubilee USA, a group that campaigns for increased assistance for low income countries.

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A reminder from Hell that saving lives will save the economy – Maclean's

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Tabatha Southey receives a letter from the Prince of Hell, Master of the Fourth Circle, Father of Greed and Root of Evil

From the desk of His Infernal Highness Mammon, Prince of Hell

For Immediate Release (along with the hellhounds): It has come to my attention that certain elected officials and public thinkers in the pitiful nation of the Earth known as the United States of America have been proposing a scheme wherein the elderly, the otherwise vulnerable, or the just clean out of luck, are to be sacrificed upon the Altar of Greed.

While I am on the record as being supportive of and advocating for puny mortals committing sundry unspeakable acts in pursuit of vast riches and power—only to realize with their final breath that there is no treasure on this Earth or beneath it worth the loss of their soul—in this particular instance, I fear we may have a case of mistaken identity on our hands.

I am Mammon, Prince of Hell, Master of the Fourth Circle, Father of Greed and Root of Evil. I am not the United States economy.

READ MORE: Coronavirus in Canada: how to get tested, what the symptoms are, where to get help

An economy is a wide set of interconnected production and consumption activities that play a role in determining how resources are allocated. There are frail humans who spend their entire lives studying economics without ever being able to perfectly predict how the economy will respond to any particular set of circumstances.

I, on the other hand, am a great beast with the body of a lion, 300 legs and seven pairs of wings—each covered in a thousand eyes which eternally seek out even the pettiest scrap of wealth I might claim for myself (you currently have $3.35 in your couch cushions). I have four heads, a dog, a pig, a serpent and a man, each of which drones endlessly and monotonously as it counts my uncountable hoard, such that no being (terrestrial, celestial or infernal) can be in my presence without being driven to madness. And there are no vagaries with me, I tell you. You commit a series of grisly and needlessly elaborate slayings in a major metropolitan area that, when traced out with string on a map, spell out my dread name, you make bank.

Figure it out, guys.

As a fiend of the pit, I respond well to bloody sacrifice and slavish devotion to my terrible will. Good job, diabolists. The economy, however—fickle creature— generally prefers careful preparation in times of plenty and swift but thoughtful action in times of crisis. For example, I might reward cutting the still-beating heart from your victim’s chest at the exact moment the sun enters a total eclipse with say, the sudden discovery of a trove of (probably not cursed) pirate treasure behind your dryer, but the economy likely won’t.

The economy is far more likely to respond positively to a calm and sober leader who is able to reassure the nation that she is more interested in protecting the people she was elected to serve than in boosting her own electoral chances or in punishing governors who have been insufficiently obsequious to her.

In short, if you really want to kill grandma at the behest of a geriatric brat, I certainly won’t stop you. While greed is my official portfolio, all manifestations of human depravity and barbarousness have my ears, all eight of them, anytime. That having been said, as something of an expert on material wealth and absolute evil, I feel compelled to point out that this notion that “combatting deadly illness” and “preserving the economy” are somehow diametrically opposed ventures simply does not reflect reality.

RELATED: Canada fends off an American proposal to send troops near the border

I applaud the hordes of you who have embraced the idea, some of you on cable, that vast numbers of innocent souls dying in unspeakable pain is a reasonable price to pay for ensuring that the wealthiest of society continue unabated to accumulate more riches than they can ever dream of spending. For those of you who are struggling with this concept, I am offering a 15 per cent Social Distancing Discount on my web course, Introduction to Inhumanity to Man (promo code HAILSATANFROMHOME15), and yet the point must be made that there is literally nothing to suggest that allowing, indeed facilitating, the untimely death of millions of people would result in the aforementioned payoff.

Mass death is, historically, a hell of a negative externality. Economies and workers, a key component of those economies, tend to function better when there aren’t refrigeration trucks parked outside of hospitals to handle all the corpses. On a micro level we see the same thing with hotels, casinos, factories, places of higher education and have you guys seen my cruise ships?

Because of this, money, even vast sums of it, spent vanquishing a virus is a good, though sometimes a necessarily rather long-term, investment. Markets don’t like wave upon wave of gaping open grave-type levels of death, almost as much as they don’t like uncertainty.

Believe me, I’m not trying to help anyone or preserve life or do anything else that would violate the Infernal Communications Act Section 66645230434, Subsection 39994834154841, Paragraph C. It’s just that I, like most demons, am an insufferable, literally hellish, know-it-all.

I’ve cornered you at parties. You’ve had a feeling the guy with so many opinions about jazz and how best to do your job couldn’t be human … that was me! And, foolish mortals, you are sacrificing to the wrong false god.

As a final note, regarding any future proposed human hecatomb, due to a settlement with Beelzebub, Lord of the Flies, Father of Pestilence, Prince of Rot, Ruin of Cities (and petty little prick), I am legally prohibited from accepting sacrifice in the form of victims of disease. I can make no further comment on the details of said settlement, but if any reader does wish to offer up lives in pursuit of my dark favour, I personally recommend casting your victims into a great furnace fashioned after my own hellish countenance.

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