FT News Briefing Market relief rally, ECB flexes, WeWork cash burn
Mar 27, 2020
US stocks experienced a surprise rally, driven by a massive $2.2 trillion stimulus package, despite record unemployment claims. Meanwhile, the European Central Bank is flexing its financial muscles with a bold bond-buying strategy to mitigate pandemic repercussions. On the other hand, WeWork finds itself in dire straits, burning through $1.4 billion last quarter, which raises concerns about its future, especially with potential withdrawal of key support from SoftBank.
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Market Rally Amidst Job Losses
- US jobless claims surged to over 3 million, revealing the economic impact of the coronavirus shutdown.
- Despite this, Wall Street rallied for a third straight day, driven by the $2 trillion stimulus package.
Stock Market vs. Economy
- The stock market's performance doesn't always reflect the state of the economy.
- Various factors, including government stimulus, influence market behavior.
ECB's Increased Flexibility
- The European Central Bank (ECB) removed constraints on its €750 billion bond-buying program.
- This gives the ECB greater flexibility to address the pandemic's financial fallout.