Economy

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US job cuts soared in April to the most ever as the Covid-19 lockdown devastated the economy. The damage to working class and middle America, the engine of the American economy is unprecedented.

The US Small Business $350 billion PPP program has been fully drawn down. The US Administration is seeking to add another $250 billion, however Nancy Pelosi is halting it based on other spends. The Feds Bostic expects Congress to act quickly to replenish the program.

The United States budget deficits will total more than $3.8 trillion (18.7 percent of GDP) in 2020 the CRFB forcasts due to the effects of the COVid 19 crisis and legislation enacted to combat it.

The US Labor Department reported the largest one-month rise in unemployment since 1975 on Friday for March as the Coronavirus hit the economy. Unemployment was higher to 4.4%  This is a lagged report however and the past two jobless claims tells us job losses are much higher.

Texas factory activity declined sharply in March the Dallas Fed Manufacturing index showed, the effect of Covid-19 and collpasing falling energy prices continue to hurt Texas. Worrisome is the production index, a key measure of state manufacturing conditions, plummeted from 16.4 to -35.3.

The Italian government has moved to take control of national carrier Alitalia, which it had an existimg stake in. This follows talk of an AirFrance KLM bailout and warnings by Qantas, American Airlines and United Airlines among others.

With the Coronavirus fears crashing global markets and economies Germany is weighing up easing counter-cyclical capital buffers for banks. Deutsche Bank shares have dropped to fresh multi-decade lows as default probability rises.

With the shockwaves from China's COVID-19 gift to the world the Japanese council on investment for the future has aims to break supply chain dependence on China with drastic measures.

Japan's PMIs in February all fell into contraction, much lower than already anemic expectations. Japanese manufacturing, service and composite PMIĀ® all fell under 50. The business outlook remains pessimistic.

The European was much weaker at the end of 2019 than many believed. Eurozone December construction output -3.1% vs prior +0.7% m/m and -3.7% y/y from the prior +1.4%. Significantly this is before the Coronavirus outbreak

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