Economy

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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 PMI® 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

The US Labor Department reported higher jobs on Friday for January as private payrolls surged. Non farm payrolls grew 225k. Unemployment ticked higehr to 3.6% Earlier private payroll company ADP reports that US jobs grew 291,000 in January, the highest since 2015.

Private payroll company ADP reports that US jobs grew 291,000 in January, the highest since 2015. The US Labor Department will report It's jobs report on Friday. In December they reported a lower than expected 145k v 160k non farm payroll additions after the US lost 12,000 manufacturing jobs. 

Real gross domestic product (GDP) increased 2.1% in the fourth quarter of 2019, “advance” estimates by the Bureau of Economic Analysis. Personal consumption was stronger but drop in business investment hinder.

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