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KostiaFM 16-03-2020 16:50

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16.03. China showed worst economic performance in 30 years

Since the beginning of 2020, the Chinese economy has experienced the most severe recession in the last 30 years, caused by the rapidly spreading coronavirus and aggressive measures to contain it. Industrial production, retail sales and investments in the country's economy have fallen enormously.

Industrial output in January-February fell even more than analysts had expected – by 13.5% compared to the same period last year. Such indicators were the weakest since January 1990.

Investments in fixed assets fell by 24.5% compared with last year's statistics. Investments in the private sector decreased by 26.4%. Retail sales sales declined 20.5% per year.

China's unemployment rate is also updating multi-year highs. The indicator rose to 6.2%, becoming the highest since the publication of official reports in 1990.

Chinese analysts note that the shock to the Chinese economy from the coronavirus epidemic was even stronger than the global financial crisis. Experts are sure that the policy of the central government should be aimed at preventing large-scale bankruptcies and unemployment.

KostiaFM 17-03-2020 17:03

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17.03. Philippines is the first in the world to close the stock market due to coronavirus

Today, the Philippine Stock Exchange closed indefinitely, and trading in foreign currency and bonds was suspended. This was the world's first market closure in response to the COVID-19 coronavirus pandemic.

The Philippine Stock Exchange said the exchange work will be suspended until further notice in order to ensure the safety of employees and traders. And foreign exchange trading will resume from March 18.

Analysts suggest that other countries may follow the Philippines, given the rapid speed of falling stock prices. If the situation does not change in the near future, stock exchanges around the world may begin to suspend their activities.

Recall that concerns about the coronavirus epidemic led to a collapse in world markets and investors had to sell even protective assets, such as gold, to cover losses

KostiaFM 18-03-2020 16:14

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18.03. World oil storage facilities may overflow in coming months

Energy experts fear that global oil storages may overflow during several months due to falling demand for oil because of coronavirus. Forecasts suggest a sharp drop in oil demand, as industrialized countries are isolated, and large cities are taking decisive measures in an attempt to slow the spread of the virus.

Traders such as Gunvor predict that oil demand may fall by at least 5 million bpd (5% of global demand) in April when the OPEC + agreement ends.

At the same time, the price war between Russia and Saudi Arabia will only increase the excess supply of oil on the market. It is expected that oil supplies from Saudi Arabia will grow by about a quarter, while Russia and the UAE are increasing production volumes amid a struggle for market share. In total, this may lead to a supply surplus of at least 8 million bpd.

Consulting Eurasia Group estimated that global oil demand could fall by a quarter or 25 million bpd in spring. According to analysts, the occupancy rate of onshore oil storage facilities is now 61%, and in six months they can exhaust their capacity. In this case, traders will be forced to switch to a more expensive option for storing oil – on tankers at sea.

KostiaFM 19-03-2020 19:04

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19.03. German business climate drops to 2009 low

The mood in the German business community deteriorated significantly in March amid concerns about the coronavirus. Ifo's preliminary business climate index in Germany fell to 87.7 points from 96 points in February. Such indicator showed a decline to its lowest level since August 2009.

The index of current assessment of the economy of Germany fell to 93.8 points from 99 points, and the index of measuring expectations for the next six months fell to 82 points in March from 93.2 points a month earlier. Such figures suggest that the German economy is accelerating towards recession.

KostiaFM 20-03-2020 16:59

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20.03. US prepares for 18-month pandemic

The coronavirus pandemic remains the main news of the day. The disease continues to spread, adversely affecting businesses and households around the world. Over the past two weeks, about 15,000 cases of Covid-19 have been reported in the United States. Experts suggest that pandemia may drag on for a year and a half.

The House of Representatives has already received approval for a $500 billion stimulus package to tackle the pandemic. In addition, Republicans today put forward another $1 trillion aid plan in the Senate.

Under the new bill, the government will pay monthly support to all Americans during the crisis. Many low-income families in the United States have been particularly affected by the outbreak of coronavirus because they cannot go to work and therefore cannot afford to pay bills or buy medicine.

KostiaFM 30-03-2020 17:25

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30.03. Refineries around the world begin to suspend due to reduced demand

Oil refineries around the world have begun to suspend production or reduce refining volumes, as fuel demand has come under serious pressure from the coronavirus pandemic.

According to Reuters, global demand for fuel will decrease by 15-20% in the next quarter, mainly due to the cessation of most air travel around the world.

On Friday, it became known about the shutdown of refineries in India and Italy. Factories in other countries are taking the necessary measures to reduce refining volumes, including in the USA, Great Britain and Germany.

A decrease in the demand for petroleum products is parallel to a drop in demand for raw materials themselves. According to the head of the International Energy Agency (IEA), global demand for oil due to coronavirus could fall by 20 million barrels per day, and oil storage could soon be full.

KostiaFM 31-03-2020 16:09

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31.03. Oil will remain below $40 due to coronavirus shock and OPEC + collapse

The price of oil in 2020 will be kept below the level of $40 per barrel. This conclusion was reached by Reuters experts, having analyzed the prospects of the current situation in the world. Currently, measures to curb the global spread of coronavirus adversely affect oil demand, and the collapse of the OPEC+ contributes to an increase in the surplus of raw materials.

Analysts expect the average Brent price to be $38.76 per barrel this year. Today, Brent and WTI are trading just above $20 a barrel. Moreover, back in January, the cost of «black gold» exceeded the current price by 70%.

Pressure on the oil market is exerted by restrictions related to coronavirus and weakening demand, as well as the price war between Saudi Arabia and Russia, which caused the flood of the market with raw materials.

Experts predict that global oil demand may decline by 0.7-5.0 million barrels per day in 2020, which will be the maximum reduction since the financial crisis in 2009.

KostiaFM 01-04-2020 16:00

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01.04. Germany and Canada will be hit hardest by world coronavirus outbreak

Analysts believe that the economies of Germany and Canada are the most susceptible to the shocks associated with coronavirus due to their dependence on trade. The rapid proliferation of COVID-19 in the United States and the associated economic consequences can pose significant challenges for Canada. According to the Geneva International Trade Center (ITC), in 2019 Canada imported $453 billion worth of goods from the United States, including cars, equipment, and oil.

And Germany is particularly vulnerable to production shocks because of its dependence on foreign demand for German equipment, cars and pharmaceuticals. According to ITC, in 2019 Germany exported $1.49 trillion worth of goods.

Experts note that open economies will suffer a longer period of time from the effects of coronavirus on supply and demand. Even after the virus spread is controlled domestically, countries with open economies will continue to suffer from the effects of the virus due to falling demand in countries that are still struggling with the crisis.

KostiaFM 06-04-2020 17:05

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06.04. Sentix: eurozone investor sentiment drops to record low

According to Sentix analytics, investor sentiment in the eurozone fell to a record low in April, as the bloc’s economy declines in the wake of the coronavirus pandemic.

The Sentix index, which measures investor confidence in the eurozone, fell to -42.9 points in April from -17.1 points in March. Analysts predicted a decline in the indicator to -30.3 points.

Sentix Managing Director Patrick Hussey noted that the current situation is much worse than the 2009 crisis, and economic forecasts underestimate the volume of economic contraction.

In Germany, the investor sentiment index fell to -36 points from -16.9 in March, reaching the lowest level since March 2009.

KostiaFM 07-04-2020 16:01

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07.04. Industrial production in Germany unexpectedly increased in February

Industrial production in Germany in February unexpectedly showed an increase. At the same time, the Ministry of Economy of Germany noted that the decline in production will still be recorded in March and April – due to the measures introduced by the authorities to combat coronavirus, which undermined business activity in the country.

According to recent data, industrial production in February increased by 0.3% compared with January. Analysts polled by Reuters on average predicted a decline of 0.9%. Consumer goods output in Germany increased by 1.8%. At the same time, the output of capital goods fell by 0.3%.

Experts note that Europe's largest economy has been hit hard by the effects of the coronavirus pandemic and is expected to fall into recession in 2020.

KostiaFM 08-04-2020 14:33

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Europe will need €500 billion to fight against coronavirus effects

Eurozone finance ministers held a videoconference, during which they expected to agree on the main issues of the plan to restore the economies of the region in the amount of €500 billion. The meeting and discussions lasted 16 hours, negotiations will continue tomorrow, April 9.

Eurogroup Chairman Mario Centenu noted that the negotiations have come to their logical conclusion, but an agreement on a number of issues has not yet been reached. In particular, disagreements between Italy and the Netherlands on the conditions under which loans should be provided to eurozone countries to combat the pandemic prevented progress in the negotiations.

The plan for supporting and restoring the economies of European countries will become the largest in the history of the European Union and its implementation will allow us to overcome the global crisis without losses.

The recovery program involves financing schemes to protect jobs (€ 100 billion), the European Investment Bank's business support program (€ 200 billion), and a program to support the most vulnerable states (up to € 240 billion).

KostiaFM 09-04-2020 16:06

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09.04. The number of applications for unemployment benefits in the United States sets records

According to the US Department of Labor, in the first week of April, the number of initial applications for unemployment benefits fell by 261 thousand from the previous week's revised figure of 6.867 million and amounted to 6.606 million. In just the last three weeks, applications for this social payment came from 16.7 million people.

From March 2019 to March 2020, the total number of applications filed was only 11.5 million.

Analysts had expected a decrease in the number of applications of 1.398 million from the previous week's previous level of 6.648 million.

KostiaFM 10-04-2020 16:21

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10.04. EU agrees €500 billion rescue package

The finance ministers of the European Union (EU) have agreed on a plan to save the bloc’s economy in the context of the coronavirus pandemic and economic crisis worth more than 500 billion euros.

In particular, within the framework of the European Stabilization Mechanism (ESM), about 240 billion euros will be allocated to those states that have suffered the most from the coronavirus pandemic and which are members of the euro area. 200 million euros will go to lending to European enterprises with an emphasis on small and medium-sized businesses, and about 100 billion euros will go to a wage subsidy scheme so that companies do not cut their employees.

After the decision of the finance ministers, this plan should be approved at a meeting of the European Council, the highest political body of the EU.

KostiaFM 13-04-2020 17:11

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13.04. Saudi Arabia continues the price war

Saudi Arabia again went against its colleagues under the OPEC+ agreement and seems to have decided to continue the price war. Despite a deal concluded over the weekend to further reduce oil production, the Kingdom announced today that it is increasing discounts on its oil.

For example, the cost of a barrel of Arab Super Light in the Asian market is lower by $5.5 than in other regions. For Northern Europe, discounts will remain the same, but the southern countries of the Old World will be able to count on an increase in discount. Compared to the Brent price, the Saudi Arab Extra Light will cost $10.3 less.

Thus, despite OPEC's efforts to stabilize the oil market, the historic deal to reduce production remains so far only in theory. To see a more or less fair value, it is necessary to wait until quarantine measures are lifted in many countries.

KostiaFM 14-04-2020 16:33

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14.04. China's GDP growth in 2020 may slow to a 44-year low

According to analysts, China's economic growth may slow to a minimum in almost half a century due to the crisis in many areas caused by the coronavirus epidemic.

In particular, the world's second largest economy can grow by only 2.5%, at the lowest rate since 1976. For example, last year, China's GDP increased by 6.1%.

Despite the fact that the Chinese government has begun to gradually ease restrictive quarantine measures, economic recovery is not expected in the coming months. Experts predict the loss of nearly 30 million jobs amid falling global demand.

In addition to the measures already taken, the People's Bank of China intends to reduce the required reserve ratio (RRR) for banks by another 100 basis points, as well as reduce the annual loan rate for first-class borrowers (loan prime rate, LPR) by 35 basis points to 3.70% by the end of 2020.

KostiaFM 15-04-2020 17:05

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15.04. US suspended World Health Organization financing

US President Donald Trump announced that the United States is completing funding for the World Health Organization (WHO). In his opinion, the organization was unable to cope with its duties and functions during the coronavirus pandemic. Moreover, Trump accused WHO of concealing data on the spread of the disease.

The head of the White House also noted that the United States will look for alternative ways to work with other countries on health issues. Australian Prime Minister Scott Morrison has supported Donald Trump's criticism of the World Health Organization, but saying that Australia will continue to make contributions.

According to Morrison, WHO did not pay due attention to the problem of the virus during its first appearance in China and did not take appropriate measures. Donald Trump also accused the organization of opposing the US decision to close the border with China.

Many countries criticized the decision of the American president.

KostiaFM 16-04-2020 17:11

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16.04. Another 5.2 million Americans file for unemployment

According to the US Department of Labor, the number of American citizens applying for unemployment benefits for the first time for the week ending April 11 was 5.245 million. The Ministry notes that Americans continue to massively apply for unemployment benefits for the fourth consecutive week.

The previous value was fixed at 6.615 million. Analysts had expected a decrease in the number of applications to 5.1 million.

Over the past month, more than 20 million applications have been filed amid the tough measures to combat the spread of coronavirus. The number of people continuing to receive unemployment benefits for the week ending April 4 increased by 4.53 million to a record 12 million.

Last month, the US economy lost 701 thousand jobs. As a result, in March unemployment jumped from 3.5% to 4.4%, peaking since August 2017. According to forecasts by Morgan Stanley, US unemployment will only continue to grow in the II quarter and will reach a record level of 15.7%.

KostiaFM 20-04-2020 14:32

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20.04. China lowered key rate for the second time since the beginning of the year

Today China for the second time since the beginning of the year lowered lending rates to support the economy and the population affected by the coronavirus. The annual loan rate for first-class borrowers (LPR) has been reduced from 4.05% to 3.85%. The five-year rate affecting the cost of mortgages has been reduced from 4.75% to 4.65%.

Earlier, on April 15, the Central Bank lowered the rate on loans issued under the Medium-term Lending Facility (MLF) mechanism from 3.15% to 2.95% to reduce the cost of borrowing for companies. This level has become minimal since the introduction of the liquidity instrument in September 2014. Also, under the MLF, the regulator provided loans for one year in the amount of 100 billion yuan ($14.19 billion).

Recall that China's GDP in the I quarter of 2020 fell for the first time in 28 years – by 6.8% (to 20.65 trillion yuan).

KostiaFM 21-04-2020 16:56

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21.04. Oil market collapses again

The situation in the oil market has again become the focus of attention of traders. For the first time in history, the price of WTI crude oil fell below zero (- $40 per barrel). This means that oil sellers are ready to pay extra to the buyer in order to get rid of crude.

Brent crude oil today collapsed to around $19 per barrel, updating multi-year lows. Pressure on quotes continues to be exerted by a catastrophic drop in demand due to the economic damage caused by the coronavirus epidemic, as well as an increase in supply.

The collapse of prices continues, despite the recently concluded new OPEC+ deal, according to which the producing countries will reduce production by 9.7 million barrels per day. As practice has shown, these measures have proved futile in the face of an oversupply in the oil market. OPEC estimates that about 14.7 million barrels per day may be unclaimed in the second quarter of the year. As a result, sales in the oil market may continue in the near future.

KostiaFM 22-04-2020 14:54

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22.04. UK March inflation slows to 1.5%

According to the National Statistical Office (ONS) of Great Britain, consumer prices in March rose by 1.5% year on year compared with the February figure of 1.7%. Analysts had forecast inflation to fall to 1.5%.

However, it is worth considering the fact that these statistics were collected even before the large-scale restriction of economic activity in the country, so they do not reflect the current situation.

The slowdown in inflation last month was primarily due to a decrease in the price of automotive fuel (by 5.1%) and clothing (by 0.3%). Food prices rose 0.2% on a monthly basis and 1.3% on an annualized basis.

Core inflation (excluding food, alcohol, tobacco and energy, CPI Core) rose 1.6% after rising 1.7% a month earlier.

KostiaFM 23-04-2020 14:23

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23.04. Eurozone business activity drops to a record low in April

Business activity in the eurozone in April reached another record low, which is a sign that the coronavirus pandemic is causing serious economic damage to the whole region.

According to preliminary data, the purchasing managers index (PMI) of IHS Markit in April fell to 13.5 points. In March, the same index already recorded the largest monthly decline to 29.7.

Chris Williamson, chief economist for business at IHS Markit, said that activity in the second quarter could record the worst recession in history. The International Monetary Fund (IMF) predicts a decline in the eurozone economy by 7.5% in 2020.

European leaders today should discuss further measures to stimulate the economy. Eurozone finance ministers have formed a €500 billion package of financial measures to deal with the economic shock caused by the pandemic, but each EU government believes that additional funding is still needed.

KostiaFM 24-04-2020 15:14

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24.04. US Consumer Sentiment better than forecast in April

The University of Michigan Consumer Sentiment Index, which reflects household confidence in the US economy, fell to 71.8 in April.

The March indicator was fixed at 89.1 points. Analysts polled by Reuters expected a drop to 68 points.

The coronavirus pandemic has led to a loss of over 26 million jobs in the past five weeks. That’s more than the employment gains since the Great Recession.

KostiaFM 27-04-2020 18:57

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27.04. Gold slips amid boost risk appetite

On Monday, the price of gold began to decline amid rising risk appetite after signs that countries could soon weaken coronavirus-driven lockdowns. The spot price of gold fell to $1,720.05 per troy ounce.

However, experts predict that the fall will not last long, as market participants hope for the introduction of new incentive measures by leading central banks.

The price of palladium rose by 0.72%, to $ 2.039.68 an ounce, and platinum – by 0.27%, to $761.80 an ounce. Silver fell 0.14% to $15.22.

KostiaFM 28-04-2020 14:56

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28.04. Unemployment in Spain jumped to 14.4%

According to the National Statistical Institute of Spain, the country's unemployment rate rose to 14.4% in the first quarter of 2020. In the previous quarter, unemployment was 13.8%. Analysts predicted its jump to 15.6% in January-March.

However, these data only partially reflect the effects of restrictive measures introduced to combat coronavirus. Isolation measures were introduced just two weeks before the end of the quarter, and most of the research had already been done by then.

According to figures, about 898.822 thousand people have lost their jobs since March 12 in quarantine. The tourism and construction sectors suffered the most.

The Bank of Spain assumes that this year unemployment could jump to 21.7%, and the economic contraction could reach 12.4%.

KostiaFM 29-04-2020 15:37

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29.04. US GDP drops 4.8%

According to the first estimate, US GDP in the first quarter of 2020 fell by 4.8%. Analysts had expected a decrease of 4%. A negative impact on the economy was exerted by measures of social isolation in response to the coronavirus pandemic.

A key component of GDP (consumer spending) fell by 7.6%. At the same time, private gross investment continued to decline for the fourth quarter in a row, losing another 5.6%. Exports fell by almost 9% and imports by 15%.

It is worth considering that the negative impact of COVID-19 on the country's economy began in March. In this regard, experts predict an even more significant blow to the economy in the II quarter. Here, drop estimates range from 20% to 40%.

KostiaFM 30-04-2020 18:47

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30.04. ECB leaves interest rates unchanged

According to the results of the meeting on Thursday, the European Central Bank (ECB) kept the base interest rate on loans at zero and the deposit rate – at minus 0.5%. The margin lending rate was left at 0.25%. These decisions coincided with the expectations of most experts.

The ECB also said that rates will remain at the current level or lower until inflation in the eurozone approaches the target of the Central Bank. The regulator also announced the launch of a new long-term lending program for Eurozone banks, lowered its interest rate on long-term lending operations (TLTRO III) and announced its readiness to increase the scale of the Pandemic Emergency Purchase Program (PEPP), amounting to 750 billion euros .

In addition, the European Central Bank has promised to continue redeeming bonds under the PEPP program until it concludes that the crisis caused by the coronavirus pandemic has come to an end.

KostiaFM 01-05-2020 15:12

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01.05. Baker Hughes announces April 2020 rig counts

According to Baker Hughes, an American oil and gas service company, the number of oil and gas drilling rigs around the world fell in April in monthly terms by 450 units, to 1,514, or 23%. In annual terms, the number of operating rigs decreased by 626, or 29.2%.

In the USA, according to the company, the indicator in monthly terms decreased by 206, or 26.7%, and amounted to 566, in Canada – by 100, or four times, up to 33 units.

The number of drilling rigs in Europe decreased by 11 (-8.9%) to 112. In the Middle East, the total number of rigs decreased by eight (-1.9%) and amounted to 420. In the Asia-Pacific region (APR), the number of rigs decreased by 40 (-17%), to 191, in Africa – decreased by five, or 4.6%, to 103. In Latin America, the indicator fell by 80 (-47.3%), to 89 installations.

KostiaFM 05-05-2020 15:27

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05.05. US stocks rise in hope of global economic recovery

According to trading data, the main US indices are growing amid the emergence of prospects for the recovery of the global economy after the crisis caused by the coronavirus pandemic. Traders evaluate the news of the gradual lifting of quarantine measures in a number of countries, in particular in Italy.

Thus, the Dow Jones Industrial Average (DJIA) index grew by 1.27% – up to 24050.99 points, the index of high-tech companies NASDAQ – by 1.44%, up to 8836.43 points, the S&P500 wide market index increased by 1, 29%, up to 2879.55 points.

An additional factor of optimism on the exchanges is also the restoration of the oil market. Today, the price of Brent grade has reached $30.30, and WTI crude oil – $24 per barrel.

However, pressure on the US stock market had data on the US trade deficit. In March, the figure rose to $ 44.4 billion, turning out to be worse than the forecast of $ 44 billion.

KostiaFM 06-05-2020 15:14

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06.05. US private sector reduces by 20.236 million

According to a US employment report from ADP, a record 20.236 million Americans lost their jobs in April. Analysts had forecast a decline of 20.050 million workers. Forced layoffs in response to an outbreak of coronavirus in the country led to an increase in the number of layoffs.

March data was revised downward to show that the number of jobs was reduced by 149 thousand jobs instead of the previously registered 27 thousand. Experts note that this was the first decline since September 2017.

Such a strong drop in private sector jobs has shown that quarantine restrictions to slow the spread of COVID-19 can have long-term disruptive effects on the US economy, even if non-core businesses open.

KostiaFM 07-05-2020 15:04

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May, 07. Industrial production in Germany in March fell at a record pace

According to the German Ministry of Economics and Labor, industrial production in the country fell by 9.2% in March compared with the previous month, which was the largest decrease since the start of data collection in 1991. Experts predicted a decrease in industrial production by 7.5%.

The automotive industry showed a decline of 31.1% in monthly terms. Manufacturing production decreased by 11.6%. The production of capital goods fell by 16.5%. However, the performance of the construction industry showed an increase of almost 2%.

The orders of industrial enterprises in Germany in March fell by 15.6% compared to February, which also became the minimum value since the beginning of data collection in 1991.

KostiaFM 08-05-2020 15:13

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May, 08. Unemployment in the US in April jumped to 14.7% and renewed a maximum since 1940

According to the US Department of Labor, unemployment in April updated the record since 1940 and jumped to 14.7% from March 4.4%, while the number of jobs in non-agricultural sectors of the economy fell by a record 20.5 million.

Analysts had forecast unemployment at 16% and a decrease in jobs by 22 million.

The National Bureau of Economic Research (NBER) has published monthly statistics since 1929, and according to it, unemployment in the United States was in May-July 1940 at 14-15%, and in May 1933 it was 25.6%.

The Ministry also reported that the hourly wage in the country in April grew by 7.9% in annual terms and amounted to $ 30.01. In monthly terms, it increased by $ 1.34.

KostiaFM 11-05-2020 17:12

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May, 11. The European Commission expects the second wave of coronavirus

The President of the European Commission said that EU countries could face the second wave of the spread of coronavirus, and all measures should be taken to prepare for such a scenario.

Scientists from the European Center for Disease Prevention and Control regularly assess the pandemic situation. At the same time, they concluded that new outbreaks of the disease can begin, even if current indicators are well controlled.

Moreover, disappointing news comes from the East, where new cases of Covid-19 infection were again recorded in China and South Korea after a long period of their absence. China reported 17 new cases of coronavirus and closed the entrance to Shulan City. South Korea is also sounding the alarm, as 27 new cases of infection were recorded in this country as early as May 10.

KostiaFM 12-05-2020 16:27

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May 12. China will abolish increased import duties for a new group of American goods

China freed another group of American goods from higher import duties, which were introduced at the height of the trade war with the United States. Withdrawal of duties takes effect on May 19 for a period of one year.

The list of goods exempted from increased import duties contains 79 categories, including chemical products and industrial goods.

Earlier in February, Chinese authorities had already announced the abandonment of additional duties on a number of US goods, including medical equipment required by the PRC to combat the epidemic of coronavirus infection.

Such step (refusal of duties) demonstrates Beijing’s readiness to comply with the terms of the trade agreement concluded earlier this year with the United States, according to which China is committed to increase imports of American goods.

KostiaFM 13-05-2020 16:13

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May 13. UK retail sales slow at record pace in April

UK retail sales plummeted last month as coronavirus control measures limited consumer activity.

According to the British Retail Consortium (BRC), retail sales in April fell 19.1% year on year. The decrease was the highest since the beginning of observations in 1995.

In February-April, sales of non-food items in stores fell 36%. Food sales during this period increased by 6%, as consumers stocked up on essentials in connection with quarantine. Online sales of non-food items jumped nearly 60% in April.

Costs at pubs and restaurants fell 97%, while sales at supermarkets grew 14%.

KostiaFM 14-05-2020 14:49

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May 14. UN: pandemic will reduce world production by $ 8.5 trillion

According to the forecast of the UN Department of Economic and Social Affairs, the global economy will fall due to a coronavirus pandemic of approximately 3.2%, or about $ 8.5 trillion over the next two years. This can destroy almost all the achievements of the previous four years.

According to experts of the department, GDP growth in developed countries in 2020 will be reduced to -5%. A modest increase of 3.4% is expected in 2021, but experts are not sure that this will be enough to compensate for the lost production volumes.

In addition, global trade is expected to decline by 2020 at 15% amid a sharp drop in demand and disruptions in global supply chains. Analysts say that more than 90% of the global economy was blocked in one form or another, which led to a decrease in consumer demand and an unprecedented increase in unemployment.

KostiaFM 15-05-2020 15:44

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May 15. Eurozone economy contracted at record pace in Q1

According to the Statistical Office of the European Union (Eurostat), the eurozone economy in the first quarter fell at a record pace, as measures to combat the coronavirus pandemic sharply reduced economic activity in the region. Today's Eurozone GDP data showed a decrease of 3.8% compared with the previous three months. This decline was the sharpest quarterly decline since data collection began in 1995.

In annual terms, the GDP of the European region fell by 3.2%, and not by 3.3%, as previously reported, after growing by 1% in October-December.

The economy of all EU countries in the I quarter decreased by 3.3% compared with the previous quarter and by 2.6% in annual terms. The German economy, the largest in Europe, contracted 2.2% in January-March compared with the previous quarter.

According to the forecasts of the European Commission, the eurozone economy in 2020 may contract by a record 7.7% due to the coronavirus pandemic, while public debt and budget deficits will increase.

KostiaFM 25-05-2020 15:49

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May 25. US unemployment may exceed 20% in May

White House economic adviser Kevin Hassett said the US unemployment rate could be over 20% in May amid a coronavirus pandemic. The politician also suggests that in June unemployment will be even higher, after which it will begin to decline at a slow pace.

«Forecasts would be more optimistic if the coronavirus vaccine were certified in July,» Hasset said, noting the detrimental effects of the pandemic on consumer activity and markets.

In April, 20.5 million Americans lost their jobs, and unemployment rose to 14.7%. Such indicators have become maximum since the Second World War. Since the beginning of the introduction of quarantine measures and the closure of enterprises and shops, about 38.6 million applications for unemployment benefits have been submitted.

KostiaFM 26-05-2020 17:05

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May 26. Fed ready for policy change

The Federal Reserve is ready to move on targeting the yield of treasury bonds – this was the conclusion made by market participants by analyzing the actions of the regulator.

A similar policy has long been adhered to by the Bank of Japan, as well as the Central Bank of Australia since March. In other words, central banks, which have already reduced rates to zero, are beginning to conduct selective purchases of government bonds in order to keep the yield curve at certain levels, while giving a signal to the market that rates will remain low.

Currently, the Fed is considering various tools to support the economy and the financial market in a way out of the crisis. Traders are sure that this is the path the American regulator will choose.

If the Fed decides to take this step, bond purchases will not be carried out according to a previously announced schedule, but only when the central bank considers it necessary, and to the extent necessary to maintain the yield in a given range.

KostiaFM 27-05-2020 18:52

Re: Daily Economic news by ForexMart
May 27. EC wants to give an additional 11 billion euros to EU countries

The European Commission proposes to adjust the multi-year financial plan of the European Union 2014-2020 to be able to allocate an additional 11.5 billion euros to the Union countries to combat the crisis caused by coronavirus.

Every year, the EU draws up the general budgets of the union. The European Commission intends to create an additional fund to restore the EU from the crisis in the amount of 750 billion euros. The EC plans to borrow these funds in the financial markets and give countries in the form of grants (up to 500 billion euros) and loans (up to 250 billion euros).

These proposals must be approved by the EU countries and the European Parliament before the money can begin to flow in 2020.

KostiaFM 28-05-2020 17:20

Re: Daily Economic news by ForexMart
US oil inventories unexpectedly rose 1.5% over the week

According to the US Energy Information Administration (IEA), commercial oil reserves in the country for the week ending May 22 grew by 7.9 million barrels, or 1.5%, to 534.4 million barrels. Analysts had forecast a decline in stocks of 1.9 million barrels.

At the same time, gasoline inventories decreased by 0.7 million barrels, or 0.3%, to 255 million barrels. Forecasts suggested growth of 0.1 million barrels.

Distillate stocks over the same week increased by 5.5 million barrels, or 3.5%, to 164.3 million barrels. An increase of 1.8 million barrels was predicted.

The strategic oil reserve in the country increased compared to the previous week by 2.1 million barrels, or 0.3%, to 643.8 million barrels.

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