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You can find the current article at its original source at https://www.theguardian.com/business/live/2020/mar/16/recession-markets-tumble-fed-emergency-rate-cut-coronavirus-ftse-dow-iag-flutter-business-live
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| Wall Street suffers worst day since 1987 as recession fears grow - business live | Wall Street suffers worst day since 1987 as recession fears grow - business live |
| (32 minutes later) | |
| Rolling coverage of the latest economic and financial news, as shares fall sharply again across the globe | Rolling coverage of the latest economic and financial news, as shares fall sharply again across the globe |
| Oz down under | |
| Stock markets open in Australia shortly and it looks likely there will be another sell off after today’s rout in the US and Europe. Australia has avoided recession for three decades but Covid 19 could end that run. | |
| McDonalds closes golden arches | |
| It’s Big Mac to go for the foreseeable future. The burger chain has become the latest fast food merchant to announce it is closing all seating areas, effective at the close of business today. | |
| Franchisees are “strongly encouraged to adopt similar operations procedures.” | |
| Starbucks, Shake Shack and others have already announced they are moving to take out only until the situation is under control. | |
| Peter Tuchman, Wall Street veteran - and the most famous face at the New York Stock Exchange - sums up how traders have felt today. | Peter Tuchman, Wall Street veteran - and the most famous face at the New York Stock Exchange - sums up how traders have felt today. |
| Boeing’s credit rating cut | Boeing’s credit rating cut |
| More bad news for Boeing, its credit rating has been cut by S&P. | More bad news for Boeing, its credit rating has been cut by S&P. |
| The company had been hit hard after the 737 Max tragedies exposed a “culture of concealment” at the company. Now the global collapse of the airline industry had dealt it another blow. | The company had been hit hard after the 737 Max tragedies exposed a “culture of concealment” at the company. Now the global collapse of the airline industry had dealt it another blow. |
| The aerospace giant, the US’s largest manufacturer, now has an S&P bond rating of BBB - one step above junk status. That comes after a 24% drop in its share price today. | The aerospace giant, the US’s largest manufacturer, now has an S&P bond rating of BBB - one step above junk status. That comes after a 24% drop in its share price today. |
| Netflix and no chill | Netflix and no chill |
| Just to show you the breadth of today’s Wall Street sell off, Netflix is down too. | Just to show you the breadth of today’s Wall Street sell off, Netflix is down too. |
| The bureau of labor statistics, which compiles the US’s monthly jobs figures, will conduct its survey this week. The US is currently enjoying the longest streak in jobs growth in its history so the numbers, out April 3, will be very closely watched. | The bureau of labor statistics, which compiles the US’s monthly jobs figures, will conduct its survey this week. The US is currently enjoying the longest streak in jobs growth in its history so the numbers, out April 3, will be very closely watched. |
| We are already seeing hiring freezes, especially in travel and leisure, but as the virus starts to hit the manufacturing supply chain, job growth will inevitably stall. | We are already seeing hiring freezes, especially in travel and leisure, but as the virus starts to hit the manufacturing supply chain, job growth will inevitably stall. |
| New York’s manufacturing index has already fallen sharply. | New York’s manufacturing index has already fallen sharply. |
| PriceWaterhouseCoopers is polling chief financial officers on Covid-19. The accountant put out the first of a bi-weekly series of polls today and it’s a bit mixed. | PriceWaterhouseCoopers is polling chief financial officers on Covid-19. The accountant put out the first of a bi-weekly series of polls today and it’s a bit mixed. |
| 54% see a potential for significant impact to their business operations, and it is “causing us great concern” | 54% see a potential for significant impact to their business operations, and it is “causing us great concern” |
| 80% see a potential for a global recession | 80% see a potential for a global recession |
| PwC expect those numbers to shift a lot in the next few weeks as the picture is still so unclear. | PwC expect those numbers to shift a lot in the next few weeks as the picture is still so unclear. |
| Time for a quick recap. | Time for a quick recap. |
| Wall Street has suffered its biggest drop since the coronavirus crisis began, as global markets suffered another day of very hefty losses. | Wall Street has suffered its biggest drop since the coronavirus crisis began, as global markets suffered another day of very hefty losses. |
| Heavy selling sent the S%P 500 plunging by 12%, to its lowest level since December 2018, as investors lost faith that politicians and central bankers can prevent a deep recession. | Heavy selling sent the S%P 500 plunging by 12%, to its lowest level since December 2018, as investors lost faith that politicians and central bankers can prevent a deep recession. |
| The Dow Jones industrial average slumped by 13% (losing almost 3,000 points), in its second-worse points decline ever. | The Dow Jones industrial average slumped by 13% (losing almost 3,000 points), in its second-worse points decline ever. |
| Asia-Pacific markets could pick up the selling baton, with Australia’s S&P ASX index being called down 4% in pre-market trading. | Asia-Pacific markets could pick up the selling baton, with Australia’s S&P ASX index being called down 4% in pre-market trading. |
| The selloff came as President Donald Trump conceded that America’s economy could be falling into recession, and suggested Covid-19 could not be under control until August. | The selloff came as President Donald Trump conceded that America’s economy could be falling into recession, and suggested Covid-19 could not be under control until August. |
| It also followed another emergency interest rate cut by the US Federal Reserve, which lowered borrowing costs to almost zero and teamed up with other central banks to create new swap lines to give easier access to dollars. | It also followed another emergency interest rate cut by the US Federal Reserve, which lowered borrowing costs to almost zero and teamed up with other central banks to create new swap lines to give easier access to dollars. |
| The slump means that the Dow has lost almost 30% of its value this year. | The slump means that the Dow has lost almost 30% of its value this year. |
| There were heavy losses in Europe too, where the FTSE 100 dropped 4% to an eight year low. The Footsie fell below 5,000 points at one stage, and has also lost some 30% of its value in 2020. | There were heavy losses in Europe too, where the FTSE 100 dropped 4% to an eight year low. The Footsie fell below 5,000 points at one stage, and has also lost some 30% of its value in 2020. |
| Investors were spooked by signs that Europe’s economy is going into recession, with Italy, Spain and France now on lockdown. | Investors were spooked by signs that Europe’s economy is going into recession, with Italy, Spain and France now on lockdown. |
| In the UK, prime minister Boris Johnson advised people to work from home where possible and to avoid pubs, clubs and theatres: | In the UK, prime minister Boris Johnson advised people to work from home where possible and to avoid pubs, clubs and theatres: |
| Johnson unveiled a series of hugely stringent new restrictions to slow what he said was the now-rapid spread of coronavirus in the UK, including a 14-day isolation for all households with symptoms, a warning against “non-essential” contact, and an end to all mass gatherings. | Johnson unveiled a series of hugely stringent new restrictions to slow what he said was the now-rapid spread of coronavirus in the UK, including a 14-day isolation for all households with symptoms, a warning against “non-essential” contact, and an end to all mass gatherings. |
| Airlines led the rout in London today, with several - including British Airways parent firm IAG and budget airline easyJet - announcing they were grounding their fleets and cancelling flights. Analysts fear many will have collapsed by May | Airlines led the rout in London today, with several - including British Airways parent firm IAG and budget airline easyJet - announcing they were grounding their fleets and cancelling flights. Analysts fear many will have collapsed by May |
| The AAP newswire also predicts that Australia’s market will slide by around 4% (although there’s still time for that to change: | The AAP newswire also predicts that Australia’s market will slide by around 4% (although there’s still time for that to change: |
| Wall Street’s Monday night rout will weigh on Asia-Pacific markets down when Tuesday’s trading session begins. | Wall Street’s Monday night rout will weigh on Asia-Pacific markets down when Tuesday’s trading session begins. |
| Australia’s ASX 200 index is expected to fall, having already tumbled almost 10% on Monday. | Australia’s ASX 200 index is expected to fall, having already tumbled almost 10% on Monday. |
| Kyle Rodda of IG writes: | Kyle Rodda of IG writes: |
| The US Federal Reserve’s attempts to calm the markets hasn’t been an overwhelming sucesss. | The US Federal Reserve’s attempts to calm the markets hasn’t been an overwhelming sucesss. |
| Last night, the Fed surprised investors with a big emergency rate cut, and the promise to create another $700bn of asset purchases. | Last night, the Fed surprised investors with a big emergency rate cut, and the promise to create another $700bn of asset purchases. |
| This attempt to prop up the markets has triggered fresh alarm on Wall Street. Investors are concerned that the Fed is itself panicking about the US economy (how bad are things really?), and anxious that monetary policy will not stave off a recession. | This attempt to prop up the markets has triggered fresh alarm on Wall Street. Investors are concerned that the Fed is itself panicking about the US economy (how bad are things really?), and anxious that monetary policy will not stave off a recession. |
| Washington Post columnist Brian Klaas points out that today’s crash was actually slightly worst than the original Black Monday in 2019: | Washington Post columnist Brian Klaas points out that today’s crash was actually slightly worst than the original Black Monday in 2019: |
| Wall Street’s tumble came as European finance ministers pledged to do “whatever it takes” to stem the economic damage of coronavirus on European economies and ensure a rapid recovery. | Wall Street’s tumble came as European finance ministers pledged to do “whatever it takes” to stem the economic damage of coronavirus on European economies and ensure a rapid recovery. |
| After a conference call of around four and a half hours, the 27 ministers issued a statement promising “a strong determination to do whatever it takes” - probably a deliberate echo of the former European Central Bank chief Mario Draghi’s 2012 pledge to preserve the single currency, which proved a turning point in the eurozone crisis. | After a conference call of around four and a half hours, the 27 ministers issued a statement promising “a strong determination to do whatever it takes” - probably a deliberate echo of the former European Central Bank chief Mario Draghi’s 2012 pledge to preserve the single currency, which proved a turning point in the eurozone crisis. |
| But the absence of a far-reaching EU-wide stimulus plan is likely to disappoint centrist, socialist and green politicians, who had called for such a sweeping response to boost the economy as the world faces a far-reaching slowdown. | But the absence of a far-reaching EU-wide stimulus plan is likely to disappoint centrist, socialist and green politicians, who had called for such a sweeping response to boost the economy as the world faces a far-reaching slowdown. |
| Mário Centeno, president of the 19-country Eurozone, said ministers stood ready to take further action as the crisis evolved. | Mário Centeno, president of the 19-country Eurozone, said ministers stood ready to take further action as the crisis evolved. |
| Some instant reaction to today’s Wall Street tumble: | Some instant reaction to today’s Wall Street tumble: |
| Wall Street’s late tumble came as Donald Trump gave a more serious assessment of the dangers of the coronavirus crisis. | Wall Street’s late tumble came as Donald Trump gave a more serious assessment of the dangers of the coronavirus crisis. |
| As flagged earlier, the US president suggested it could take until July or August to get the outbreak under control. | As flagged earlier, the US president suggested it could take until July or August to get the outbreak under control. |
| CNBC has the details: | CNBC has the details: |
| Trump also spoke about the prospect of lockdowns in “certain areas” or “hot spots”, as the White House outlined its recommendations for Americans to avoid gatherings of 10 or more people, and to refrain from seating at bars, restaurants and food courts to stem the spread of the coronavirus. | Trump also spoke about the prospect of lockdowns in “certain areas” or “hot spots”, as the White House outlined its recommendations for Americans to avoid gatherings of 10 or more people, and to refrain from seating at bars, restaurants and food courts to stem the spread of the coronavirus. |
| I think the Dow is now at its lowest level since February 2017, shortly after Donald Trump became US president: | I think the Dow is now at its lowest level since February 2017, shortly after Donald Trump became US president: |
| This is the second time in three trading sessions that the Dow has suffered its worst fall since 1987. | This is the second time in three trading sessions that the Dow has suffered its worst fall since 1987. |
| The index has now posted four serious plunges in March already, and has lost 20% of its value this month alone. | The index has now posted four serious plunges in March already, and has lost 20% of its value this month alone. |