More than 2 million cases of COVID 19 have been confirmed worldwide, according to data from Dutch media BNO News on April 15. The world health organization warned that the outbreak had not yet peaked, but hopes that the us blockade would be eased outweighed worries about corporate performance, and market sentiment of risk taking rebounded. Gold hit a seven-and-a-half year high last day, closing in on the 1,750 mark, and is on track to rise toward $2,000 as an outbreak of gold bulls fueled recession fears. Investors are keeping an eye on earnings reports from a slew of U.S. companies and the release of U.S. retail sales figures known as “terror data.”
Latest outbreak: more than 2 million confirmed worldwide! Donald trump has announced a suspension of funding for the world health organization
According to the latest data released by Dutch media BNO News, there are more than 2 million confirmed covid-19 cases worldwide, up to 2000724 cases, and more than 130,000 deaths.
As of 08:41 Beijing time on April 15, there were more than 610,000 confirmed COVID 19 cases, 613,886 cases and 26,945 deaths, according to real-time data update website worldometers. The number of confirmed cases is more than three times higher in the United States than in any other country, according to Reuters.
Margaret Harris, a spokeswoman for the world health organization (WHO), told a press conference on April 14 that covid-19 had not yet peaked.
Harris said the current outbreak in Europe was a mixed bag, with new cases slowly starting to fall off in Italy and Spain, but rising in countries such as Turkey and Britain. For a single country, the current outbreak in the United States is the worst in the world.
As the outbreak spread, US President Donald trump said on Tuesday that his administration would suspend funding to the world health organization (WHO) pending the global agency’s review of its handling of the coronavirus outbreak.
Trump criticized the world health organization for opposing large-scale travel restrictions and for failing to quickly review and share accurate information on COVID 19.
Speaking in the White House rose garden, Mr Trump said: “the who’s opposition to travel restrictions puts political correctness ahead of life-saving measures. The reality is that who has failed to fully access, review and share information in a timely and transparent manner.”
The American medical association (AMA), the nation’s largest professional association of physicians, called the decision “a very dangerous one.” The association’s President, Dr. Patrice a. Harris, wrote: “fighting A global pandemic requires international cooperation, science and data. Cutting funding to who, rather than focusing on solving problems, is a dangerous move at a time when the world is at stake. The AMA is deeply concerned about this decision and its broader implications, and we strongly urge the President to reconsider.”
The UN secretary general Antonio guterres also criticised Mr Trump’s plan to suspend funding to the who, saying it was not the time to cut resources for who operations.
US President Donald trump has announced plans to restart the economy in some states before May 1
Us companies report first-quarter results starting this week, with results from two us banking giants, JP Morgan chase and Wells Fargo, due on Tuesday.
Earnings per share for the first quarter were 78 cents, well below Wall Street’s forecast of $2.49, according to detailed results. But revenue came in at $29.07 billion, beating expectations of $28.97 billion.
Wells Fargo earned 1 cent a share in the first quarter, well below the 61 cents a share forecast. Revenue was $17.7 billion, below expectations of $19.32 billion. Net income was $653 million, down from $2.873 billion in the previous quarter and down 89% from $5.86 billion a year earlier.
Both Banks said they set aside more cash to cover loan losses in the first quarter, causing earnings per share to fall sharply short of expectations.
Even as jpmorgan chase and Wells Fargo kick off the earnings season with a “double dip” in revenues, the trump administration may be able to offset the drag from worrying industry reports with optimism over the easing of a lockdown related to the outbreak.
The director of the White House national economic council frank kudlow says President trump will announce a series of decisions to restart the U.S. economy in the next day or two as the health crisis appears to be receding.
President Donald trump said Tuesday he believes some states will be able to “reopen” their economies by May 1, removing social distance restrictions imposed to slow the spread of novel coronavirus.
“The plan to reopen the country is close to being finalized,” trump said at a White House briefing on the outbreak on Tuesday. “I will speak to all 50 governors very soon, and then I will authorize the governors of each state to implement a reopening and a very strong reopening program for their states at a time that is most appropriate.”
“It will be very close because, as you know, some states are in a very different state and in a very different position from others,” he said. It’ll be close. Maybe even before May 1st.”
In addition, trump on Monday announced the establishment of an advisory panel to advise on the economic recovery. The panel includes hundreds of executives from almost all industries, including apple CEO Tim cook, wal-mart President Doug McMillon, Las Vegas sands CEO Sheldon Adelson and New England patriots owner kraft. The list also includes politicians and think tanks, including former secretary of state condoleezza rice.
“The market is up, helped by the prospect of the economy restarting soon and the coronavirus outbreak (possibly) reaching some kind of peak,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
‘the market is likely to see further significant selling in the coming months as data are released showing the extent of the economic damage from the outbreak,’ he said. “We are going to see dire [macroeconomic] data, which will weigh on the market.”
American terror data is coming! Gold is poised for a major breakthrough
This trading day, the market will have known as the “terror data” known as us retail sales data, will be released at 20:30 Beijing time on Wednesday. U.S. retail sales are expected to fall 8 percent in March from a 0.5 percent drop in the previous month, according to media surveys.
Retail sales are expected to record a record low of -8 percent, well below the previous low of -2 percent.
Us retail sales figures will be crucial, with consumption holding up well last year. The retail sales figures will be the first time the market has seen the impact of the restrictions on the retail sector.
The current market expectation is that the march retail sales figure could be -8 percent, which would be the biggest drop on record if it meets expectations, after the worst showing was -2 percent in November 2008. That will put pressure on the dollar, pushing money into safe-haven assets such as the yen and gold.
“The recent improvement in risk sentiment among global investors, coupled with the fed’s aggressive policy response, has started to push the dollar down further,” said Lee Hardman, currency analyst at MUFG.
In addition, the United States before the stock market, bank of America, citigroup, Goldman sachs, United States bank, asml, unitedhealth, sands group will release results, the market also remains concerned.
Simeon Siegel, an analyst at bmo capital markets, said the outbreak was no more difficult for the retail sector than in the past. In a recession, companies can get out of a crisis simply by changing their business models and other structural reforms or self-help programs, but there seems to be little they can do on their own. Furloughs are more like “band-aid” therapy, he says, but in the end the band-aid only covers the wound temporarily, not heals it.
The latest world economic outlook released by the international monetary fund (IMF) on April 14 predicted that the global economy would shrink by 3% in 2020, far exceeding the slump triggered by the 2008 global financial crisis and the worst global recession since the great depression of the 1930s.
The report predicts that advanced economies will contract by 6.1% in 2020, while emerging market and developing economies will contract by 1%. The report predicts the U.S. economy will contract 5.9 percent this year, the euro zone economy will contract 7.5 percent and Japan’s economy will contract 5.2 percent.
The sharp economic downturn and massive government bailout spending caused by the new outbreak will nearly quadruple the fiscal 2020 deficit to a record $3.8 trillion, or 18.7 percent of gross domestic product, the committee for a responsible federal budget said on Monday.
As a new pandemic roiled the global economy, triggering a massive stimulus package and deepening fears of recession, investors rushed to the safety of gold.
Gold rose above $1,740 to as high as $1,747, its highest level in seven and a half years. In Asian trading on Wednesday, gold hovered around $1,725, awaiting further guidance.
“There was a lot of safe-haven buying,” said Bob Haberkorn, senior market strategist at RJO Futures. There are fears of recession/depression. The economic outlook looks pretty grim.”
“The fed just pumped in $2 trillion last week, and other central Banks around the world are doing the same thing; With interest rates at or near zero and the market still worried, this has created the perfect environment for gold to rise above $2,000 an ounce.”
Scotiabank said the rise would exceed the level of 2009 to 2012.
Chris Weston, director of research at Pepperstone, said the gold market had broken through key resistance levels and any pullback would be a good buying opportunity. “Gold and the whole precious metals market are once again attracting the attention of investors who see a pullback as a buying opportunity.”
‘the gold market is slightly overbought and there could be a brief correction,’ said research firm RMB Group. It expects gold to rise to $1,920 an ounce, with a long-term target of $2,100.