Top 5 Things to Know in the Market on Friday | Investing
The coronavirus continues to spread across the world, as the number of confirmed cases jumps again in South Korea and Iran. Sub-Saharan Africa also contirms its first case. Asian and European stock markets fall sharply in the wake of Wall Street’s Thursday panic, while Brent crude dips briefly below $50 a barrel. The Bundesbank acknowledges a likely hit to the German economy. The Turkish and Russian currencies weaken as the two countries come close to direct confrontation in Syria. And there are also U.S. household income data due. Here’s what you need to know in financial markets on Friday, February 28th.
How Coronavirus Will Impact U.S. Equities | Investopedia
The rapid spread of the coronavirus (COVID-19) has spurred a wave of selling in the equity markets, with the S&P 500 Index down by about 9% in early afternoon trading from its 52-week, intraday high set on Feb. 19. That retreat has pushed the index to levels last seen in early December, and stocks face steeper declines if the virus spreads further. Goldman Sachs outlines the likely negative and broad impact of this trend on U.S. stocks in a new report.
A Fed Rate Cut Right Now Is the Wrong Medicine | Barrons
The Federal Reserve doesn’t need to lower interest rates, but it probably will anyway.
Coronavirus has introduced a new risk into a global economy that already has been hampered by tariffs and other trade barriers. But an interest-rate cut would have limited effect on any disruption in commerce caused by the virus and, of course, do nothing to alleviate its other symptoms.
Canada Economy Puts In Worst Performance In Almost Four Years As Woes Bite | Reuters
OTTAWA, Feb 28 (Reuters) – Canada’s economic growth slowed to an annualized rate of 0.3% in the fourth quarter, the worst performance in almost four years, thanks in part to strikes, bad weather and shutdowns, Statistics Canada said on Friday.
The number matched both the forecast of analysts in a Reuters poll as well as the Bank of Canada’s prediction. Statscan revised third quarter annualized growth down to 1.1% from an initial 1.3%.
The Bank of Canada’s next interest rate decision is on Wednesday, and market expectations of a cut have jumped as the economy faces challenges from a coronavirus outbreak and rail blockades. The central bank has left rates unchanged since October 2018.
Op-Ed: The Western World Order Needs Growth-Oriented Economic Policies | CNBC
The European Union’s economic stagnation is threatening its social cohesion and providing a breeding ground for political extremism, hate, xenophobia and violence. The U.S. has a fully-employed economy, but the winning left-of-center political platforms in Democratic primaries are sending a message that social peace, equity and justice may require a new look at economic management and national priorities. The trans-Atlantic community needs an updated and better integrated system of trade and finance that should remain a point of reference for the rest of the world.
Cisco Starts New Round Of Layoffs | MarketWatch
Cisco Systems Inc. has started a new round of job cuts as the networking-equipment maker faces the prospect of slowing sales growth because of global economic uncertainty.
The layoffs, Cisco told The Wall Street Journal on Thursday, are “part of an ongoing process of aligning our investments and resources to meet the evolving needs of our customers and partners.” The company, which has around 75,000 employees, declined to say how many people were affected or what roles they hold.
Women in Investment Festival 2020 | Womenininvestmentfestival
The successful investment firm of the future will be differentiated by its culture and its ability to attract the best talent. Women of all races, ages and backgrounds bring a variety of input, opinion and challenge that brings huge value to every part of an organisation and drives innovation. However, how many times have you been into the boardroom, a conference, or a meeting room and been one of the few women in the room. With many companies still struggling to promote women into senior roles, we need to have candid, open, and courageous discussions about diversity and inclusion.
FOREX-Euro-dollar Volatility Surges To One-year High Amid Big FX Moves | Investing
LONDON, Feb 28 (Reuters) – Volatility in the euro-dollar exchange rate surged to its highest in more than a year on Friday, as growing fears over a coronavirus outbreak raised recession fears and fuelled big currency moves.
Hopes that the outbreak can be contained in China have been replaced this week by worries that infections are spreading around the globe. Measures to contain the virus have wreaked havoc on supply chains, the world’s economy and financial markets.
How Countries ‘secretly’ Move Money Around – Including South Africa | Businesstech
The Tax Justice Network (TJN) has published its Financial Secrecy Index for 2020, highlighting the most secretive countries when it comes to their offshore financial activity – either hiding funds overseas, or opening their banking system to offshore financial flows.
The index markets itself as a ‘politically neutral’ ranking, to be used as a tool for understanding global financial secrecy, tax havens or secrecy jurisdictions, and illicit financial flows or capital flight.