Daily Archive: March 21, 2020

Stocks end worst week since 2008 deep in the red

U.S. stocks dropped to cap the worst week for equities since the global financial crisis amid dire warnings about the economic effects of the coronavirus pandemic and as governments stepped up efforts to keep people at home.

The S&P 500 Index tumbled to its lowest in three years, ending the week down 15 per cent as the European Union said the recession this year may be as bad as 2009, and Goldman Sachs warned the U.S. economy may shrink 24 per cent on an annualized basis in the second quarter. Oil sank as governments around the world imposed restrictions on movement to slow the disease’s spread, bringing its weekly decline to 29 per cent.

The 10-year Treasury yield fell back below 1 per cent. The dollar was little changed after vaulting more than 8 per cent in the previous eight sessions as the Federal Reserve coordinated action with global central

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Google exploring using location info to slow coronavirus spread By Reuters


WASHINGTON (Reuters) – Alphabet (NASDAQ:) Inc’s Google is exploring ways to use location information to slow the spread of the coronavirus by, for example, determining the effectiveness of social distancing.

U.S. Senator Ed Markey, who has long championed consumer privacy, urged caution with the government’s efforts to partner with big tech companies to track the coronavirus.

In a letter to Michael Kratsios, the White House’s chief technology officer, Markey cited a Washington Post report that said the government had discussions with Amazon.com Inc (NASDAQ:), Apple Inc (NASDAQ:) , Facebook Inc (NASDAQ:) , Alphabet Inc’s Google, IBM (NYSE:) Corp and other tech companies to discuss potentially using smartphone location data as a research tool as the virus spreads in the United States.

“We need assurances that collection and processing of these types of information, even if aggregated and anonymized, do not pose safety and privacy risks to individuals,” Markey wrote.

He

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Goldman Sachs just made the grimmest prediction yet about the economy in Q2

Most GDP predictions for the second quarter have ranged from horrible (-8%) to catastrophic (-15%). Goldman Sachs just blew those estimates out of the water.

The bank today issued a research note with its projection for GDP loss in the second quarter of 2020: down 24%, the result of a “sudden stop for the U.S. economy.”

Overall, they expect a 6% drop in the first quarter. Even with significant positive growth in quarters three and four, that will work out to an annual loss of 3.8%.

The research note pointed to “a sudden surge in layoffs and a collapse in spending, both historic in size and speed, as well as shutdowns of many schools, stores, offices, manufacturing plants, and construction sites” as a reason for the downward revision.

The report assumed an 85% reduction in sports spending, 75% in transportation, and a 65% decline in revenues for hotels and restaurants.… Read More