FT News Briefing Stimulus haggle, James Kynge on China, US oil talks
Mar 26, 2020
The U.S. Senate has approved a massive $2 trillion stimulus package after intense negotiations. Ford has faced a significant credit downgrade, shaking the auto industry. Insights reveal how China may lead global recovery during the pandemic while struggling economies falter. The pressure mounts on Saudi Arabia to resolve its oil price war with Russia, as the U.S. shale industry is on the brink of collapse. This dynamic situation raises crucial questions about international relations and economic stability.
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Market Response to Stimulus
- Investors are looking to the federal government to stimulate the economy.
- This is evident in the stock market rally following the announcement of the stimulus deal.
Ford's Fallen Angel Status
- Ford's credit rating downgrade sent $36 billion of its debt into the junk bond market.
- This is the largest fallen angel downgrade since 2005, when both Ford and GM were downgraded.
China's Economic Recovery
- While the rest of the world grapples with the pandemic, China's economy shows signs of recovery.
- This could position China as a rare growth pole, potentially boosting its global influence.