Daily Archive: May 17, 2020

NZ gives sports sector $157 million boost to get through COVID-19 By Reuters

© Reuters. New Zealand’s Finance Minister Grant Robertson speaks during a media conference in Wellington

WELLINGTON (Reuters) – New Zealand’s struggling sports sector has received a NZ$265 million ($157 million) injection from the government to help it mitigate some of the worst financial effects of the COVID-19 pandemic, Sports Minister Grant Robertson said on Sunday.

Robertson, who is also New Zealand’s finance minister and delivered the national budget on Thursday, said funding and revenue had dried up for nearly all sports organisations and that they were under “immense strain”.

“We are providing the support needed to sports at all levels to remain viable, get stronger and adapt,” Robertson said in the post-budget statement.

“We have also seen many of our professional sports and athletes struggle as competitions have been cancelled or suspended. Budget 2020 will provide some assistance, so they can keep competing.”

The funding would be spread over four

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Stocks get hammered after Jerome Powell was more pessimistic than market expected

The S&P 500 closed lower for the second day in a row after Federal Reserve Chairman Jerome Powell warned on Wednesday of extended economic weakness due to the coronavirus pandemic and called for Congress to agree on additional fiscal support.

Stocks sold off as investors appeared to price in a deeper economic downturn than they had previously expected as they worried that Powell’s call for additional stimulus would go unanswered.

While Powell pledged in a webcast to use the U.S. central bank’s power as needed, he suggested that it might not be enough to avoid deep economic damage without more fiscal support.

“He’s saying if you want to avoid a slow recovery and long-term economic damage you need a strong fiscal response, effectively placing that responsibility back over to governments instead of central banks,” said Shawn Cruz, manager of trader strategy at TD Ameritrade in Jersey City, New Jersey.

And

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Is the stock market experiencing the dreaded ‘dead cat bounce’?

On March 23 the S&P 500 closed down nearly 34% from all-time highs seen just the month before. It was the fastest 30% bear market from all-time highs in stock market history.

Then without warning the market snapped back in a big way, rising nearly 18% in just three days and 31% through the close this past Monday.

The swift decline in stocks was painful but understandable. The virus closed off most of the economy on the spot in March. Nothing like this had ever happened before.

The snapback rally is more of a head scratcher for most investors. How could stocks continue rallying in the face of the worst economic data since the Great Depression? Tens of millions are unemployed. Thousands of businesses are gone. Many more will follow.

One explanation would be the 34% drop from late-February through late-March was pricing in those economic numbers. The simplest explanation … Read More