Global Economics

Asia’s Morning: Big Bazooka’s Everywhere

Central Banks around the world appear to be about to deploy more large calibre monetary weaponry than an NRA convention. Both the Federal Reserve and Reserve Bank of New Zealand have enacted emergency rate cuts overnight. The actions of the Fed cutting the fed funds rate by 100bps to 0.0-0.25%, wi ...

The Great Coronavirus Unwinding?

Fred Imbert, Yun Li and Eustance Huang of CNBC report stocks post biggest rally since 2008, clawing back some of their coronavirus collapse:Stocks rose sharply in volatile trading Friday as Wall Street tried to rebound from the sharp losses suffered in the previous session — the worst since th ...

Macro Briefing | 13 March 2020

Coronavirus infections spread near and far: Reuters US launches airstrikes on Iranian-backed militia sites in Iraq: CNN Global recession risk rising, economists advise: WSJ What would a US recession look like this time? NY Times US stock market is at risk of worst week in history after Friday’s t ...

A Miserable March For Markets?

Yun Li of CNBC reports the Dow falls 250 points, ekes out small weekly gain after a wild runStocks fell on Friday, capping a roller-coaster week on Wall Street, as the coronavirus outbreak kept investors on edge.The Dow Jones Industrial Average cut losses rapidly in the final 10 minutes of trading ...

What Do I Do About Coronavirus?

Here we are on Feb 29 2020, in the midst of a Coronavirus correction. I have no idea how this is going to play out, and neither does anybody else. Markets could bounce back Monday, or this could be the start of a global recession. If I had a crystal ball or a time machine, I wouldn’t be writing t ...

The Economic Impact of the COVID-19

Several readers have asked about the economic impact of the novel coronavirus. The answer is it depends on the severity of the epidemic.Goldman Sachs economists wrote this morning: Our new baseline scenario involves a continued slowdown in infections in China that allows for a slow recovery in high- ...

Government Measures To Stop COVID-19 Triggering Pandemic of Fear

Our rapid-response team at Yardeni Research first responded to the coronavirus outbreak in the Monday, 1/27 issue of our Morning Briefing, which was titled “Going Viral?” That was the next business day after the outbreak first hit the headlines on Friday, 1/24. Let’s review some of our initi ...

US Open – Carnage pause, Treasury yields remain heavy, Home Depot impresses, Oil looks vulnerable, Gold’s pullback, Bitcoin softens, LATAM under pressure

The day after the Dow’s worst drop in two years is showing a small bounce that is getting faded. It seems Wall Street is prepared to shift V-shaped recovery calls to U-shaped ones.  While China is showing progress with the coronavirus, the global spread continues as Afghanistan, Kuwait and Bahr ...

Macro Briefing | 25 February 2020

Forecasting the economic impact of coronavirus is mostly guessing: WSJ It’s premature to rule out a global recession triggered by coronavirus: MW Is black swan blowback from coronavirus stalking Trump’s re-election? Politico Will US stocks bounce after Monday’s dramatic selloff? CNBC Iran may ...

Macro Briefing | 20 February 2020

Wide-ranging attacks at Democratic debate with Bloomberg in the mix: Reuters China’s manufacturing sector struggles to restart after virus outbreak: SCMP White House admits that Trump’s trade policy slowed US economy: Bloomberg Fed minutes suggest rates will remain unchanged for near term: CNBC ...