FT News Briefing Thursday, March 19
Mar 19, 2020
The European Central Bank announces a massive €750bn bond purchase to tackle the chaos from the pandemic. Shifting markets reflect pressing economic concerns, including alarming unemployment forecasts. A notable oil price plunge further complicates the scenario, exacerbated by a price war between Russia and Saudi Arabia. Meanwhile, healthcare supply chains are under severe strain, highlighting critical shortages of testing materials and ventilators as nations struggle to secure necessary resources.
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Market Volatility
- Market swings reflect asset managers unwinding recent trades.
- This forced selling should eventually subside, but the realization that the coronavirus's economic damage will be long-lasting is also contributing to market volatility.
US Unemployment
- US unemployment could reach 20% without intervention, according to Treasury Secretary Mnuchin.
- Anecdotal stories and Wall Street predictions suggest this is a realistic possibility, with job centers reporting huge increases in unemployment claims.
Oil Price Slump
- Oil prices have plummeted due to decreased demand and the Russia-Saudi Arabia price war.
- Though Russia initially showed bravado, there are hints they may reconsider as their government revenues suffer.