FT News Briefing Thursday, March 12
Mar 12, 2020
As COVID-19 is declared a global pandemic, the U.S. imposes a travel ban on Europe to curb its spread. The stock market takes a hit, with Boeing experiencing major financial losses. Discussions pivot to the economic effects of lockdowns, oil market fluctuations, and the upcoming measures from the European Central Bank, especially regarding small business loans. The need for coordinated fiscal policies to spur economic recovery is highlighted amid the growing uncertainty.
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Dow Jones Enters Bear Market
- The Dow Jones Industrial Average fell 20% from its high, marking the end of an 11-year bull run.
- This drop signifies a bear market, driven by WHO's pandemic declaration and global anxieties.
Navigating a Bear Market
- Expect increased selling pressure and safe-haven trades like cash, treasuries, and gold.
- Fear will continue to be a driving force in the market due to the health crisis.
Boeing's Stock Plunge
- Boeing's shares dropped 18% after drawing down a $14 billion loan.
- Investors expected a slower drawdown, but Boeing needed cash due to the 737 MAX crisis and virus impact.