Markets suffer record meltdown as global coronavirus alarm grows

By Steve Holland and Liangping Gao

 

People check in to a British Airways flight at the international terminal at LAX airport in Los Angeles, California, U.S., amid reports of the coronavirus, March 11, 2020. REUTERS/Lucy Nicholson

 

WASHINGTON/BEIJING (Reuters) - Global markets suffered record falls on Thursday as alarm over the coronavirus intensified, and governments from Ireland to Italy unveiled new measures to try to slow the spread of a disease that has infected more than 127,000 people worldwide.

 

Travellers in Europe rushed to board flights to the United States after President Donald Trump imposed sweeping restrictions on travel from the continent, a decision that angered leaders there.

 

In Europe, North America and Australia events from sports matches to weddings were cancelled or suspended, schools were closed and public gatherings restricted or banned, as normal life for millions began to be directly impacted.

 

Trump even suggested that the 2020 Olympics in Tokyo could be delayed by a year.

 

"Maybe they postpone it for a year... if that's possible," Trump told reporters. "I like that better than I like having empty stadiums all over the place."

 

The White House announced it was stopping public tours, while Rome's Catholic churches were ordered closed - a move thought to be unprecedented in modern times - and the city's faithful given dispensation not to attend Sunday mass. Disneyland in California is shutting the gates of its amusement park.

 

But in China, where the epidemic originated, officials said the disease had peaked and the global spread could be over by June if other nations applied similarly aggressive containment measures as Beijing's communist government.

 

Fears of the impact of such restrictions on the movement of people and goods hit global stocks and oil prices hard.

 

Major European bourses fell by double-digit percentages for their biggest daily losses on record, led by a 17% slide in Italian stocks <.FTMIB>. Stimulus efforts from the European Central Bank did little to calm nerves.

 

On Wall Street stocks slumped around 10% <.DJI> <.SPX> in their worst day since the 1987 "Black Monday" crash. [.N]

 

European airline stocks plunge after Donald Trump restricts travel from Europe to try to contain the coronavirus. Lucy Fielder reports.

 

'MASS PANIC'

Trump had restricted certain travel from Europe to the United States in a televised address on Wednesday, and on Thursday, weary and confused travellers rushed to airports to board the last flights back to the United States.

 

"It caused a mass panic," said 20-year-old Anna Grace, a U.S. student at Suffolk University on her first trip to Europe, who rushed to Madrid's Barajas airport at 5 a.m. to get home.

 

The outbreak has disrupted industry, travel, entertainment and sports worldwide, and prompted airlines to appeal for urgent aid from their governments.

 

But its progress in the epicentre of China's Hubei province has slowed markedly amid strict curbs on movement, including the lockdown of its capital Wuhan.

 

Hubei logged just eight new infections on Wednesday, the first time in the outbreak it has recorded a daily tally in single figures. The rest of mainland China had seven new cases, six of them imported from abroad.

 

"The peak of the epidemic has passed for China," said Mi Feng, a spokesman for the National Health Commission.

 

The Chinese government's senior medical adviser, Zhong Nanshan, an epidemiologist renowned for helping combat the SARS outbreak in 2003, said the crisis could be over by mid-year if other countries followed China's example.

 

The coronavirus has infected more than 127,000 people around the world, the vast majority in China, and killed 4,700, according to a Reuters tally.

 

WAR FOOTING

In a wave of announcements, countries and U.S. states unveiled stricter new measures to slow the spread of new infections, some of them reminiscent of a war footing.

 

"It's going to spread further," British Prime Boris Johnson told a news conference. "I must level with you, level with the British public - more families, many more families, are going to lose loved ones before their time."

 

French President Emmanuel Macron said in a television address on Thursday night that the country was facing its worst public health crisis in a century and announced measures including the closure of all schools, creches and universities from Monday.

 

California and New York announced sweeping bans on large gatherings, and more schools, museums and other institutions said they planned to close, including all schools in Ohio and public schools in Maryland.

 

Streets in Milan and Venice were practically deserted on Thursday as prime minister Giuseppe Conte further restricted movement and closed all shops in order to fight the coronavirus contagion.

 

In Italy, where the death toll passed 1,000, the government imposed a blanket closure of restaurants, bars and almost all shops except food stores and pharmacies.

 

Ireland will shut schools, universities and childcare facilities until March 29 and restrict mass gatherings.

 

Some matches in European soccer's elite Champions League were postponed, while in U.S. sports the National Basketball Association and National Hockey League seasons were both suspended and Major League Baseball delayed its season start. U.S. college basketball's "March Madness"

tournament was cancelled.

 

Canadian Prime Minister Justin Trudeau and his wife Sophie were in self-isolation after she came down with flu-like symptoms and was tested for the new coronavirus.

 

Oscar-winning American actor Tom Hanks tested positive in Australia, where he is on a film shoot.

 

(Additional reporting by Ryan Woo, Stella Qui, Kevin Yao and Gabriel Crossley in Beijing; Alexandra Alper, Steve Holland, Susan Heavey, David Lawder, and Richard Cowan in Washington, Marine Strauus in Brussels, William Schomberg in London, Stephanie Nebehay in Geneva, Karolos Grohmann in Ancient Olympia, Ben Blanchard in Taipei, Jill Serjeant in New York, Inti Landauro and Clara-Laeila Laudette in Madrid and Balazs Koranyi and Francesco Canepa in Frankfurt; Writing by Nick Macfie, Mike Collett-White, Alex Richardson and Lisa Shumaker; Editing by Robert Birsel, Andrew Cawthorne, Giles Elgood, Mike Collett-White and Cynthia Osterman)

 

-- © Copyright Reuters 2020-03-13

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Oh it’s well and truly hit the fan!!

1 hour ago, webfact said:

while Rome's Catholic churches were ordered closed

so much for their god  then!

Economic reset? 1929 again? 

Just imagine how the stock market would soar if instead of applying stimulus and bailouts the government had spent the same money in creating reiliant institutions that saw to the well being of the people, who in turn would create the custom enabling markets to prosper. Instead they treat the needs of the populace as an after thought and funnel the money up the steps to the nearest bank and tell you there isn't anything left to help people.

Trump even suggested that the 2020 Olympics in Tokyo could be delayed by a year.

 

The CHOSEN one has spoken. I didnt know he was on the Olympics Committee???????

Take a bow, communist China.  Your Wuhan virus has hit pandemic status.  And world markets bow down to you—way down.

Can't believe there is no TVF topic on this, but the Fed has just dumped another $1.5 trillion in money printed out of nowhere on the markets. And the markets still puked. Marshall Trump and Deputy Jerome went swaggering down the street yesterday and thought, "We got this." And they blew their own faces off.  More than a decade of QE 3 and now we get QE 4. The Fed just printing money to make sure the stocks owned by the 1 percent can get juiced again. This Fed and Trump do not care about people or public health. They only care about pumping the markets and trying to reinflate the bubble. Disaster. 

Quote

“The virus was the catalyst but it’s not the cause,” said Christopher Whalen, founder of Whalen Global Advisors. “Both bonds and equities were inflated rather dramatically by our friends at the Fed. You’re seeing the end game for monetary policy here, which is at a certain point you have to stop. Otherwise you get grotesque asset bubbles like we saw, and the engine just runs out of fuel.”   https://www.cnbc.com/2020/03/12/fed-to-pump-more-than-500-billion-into-short-term-bank-funding-expand-types-of-security-purchases.html

 

Edited March 13, 20206 yr by zydeco

10 minutes ago, zydeco said:

Can't believe there is no TVF topic on this, but the Fed has just dumped another $1.5 trillion in money printed out of nowhere on the markets. And the markets still puked. Marshall Trump and Deputy Jerome went swaggering down the street yesterday and thought, "We got this." And they blew their own faces off.  More than a decade of QE 3 and now we get QE 4. The Fed just printing money to make sure the stocks owned by the 1 percent can get juiced again. This Fed and Trump do not care about people or public health. They only care about pumping the markets and trying to reinflate the bubble. Disaster. 

 

Markets pay pensions, livelihoods , create millions of jobs - your anti capitalist persona appears to have a problem comprehending that. 
 

Basic economics 

4 minutes ago, Bruntoid said:

Markets pay pensions, livelihoods , create millions of jobs - your anti capitalist persona appears to have a problem comprehending that. 
 

Basic economics 

Demand creates jobs.

Looks like the SET plunge triggered the 10% circuit breaker again at the open.

 

U.S. futures pointing another off day.

 

Watching Jim Cramer meltdown on live TV and plead to kudlow for "socialism" was sad to watch.

 

Wall St. loves the capitalism, until they need another bailout.

 

 

 

 

 

 

21 minutes ago, Bruntoid said:

Markets pay pensions, livelihoods , create millions of jobs - your anti capitalist persona appears to have a problem comprehending that. 
 

Basic economics 

Capitalism = you get the rewards, if you take the risks, but get the loss when risk goes against you. What you seem to be saying is that you get the rewards without risks. You get your profits, but if the market tumbles, the government should be there to bail you out. Socialism for the bankers and the risk takers when their investments fail. That's your capitalism? 

22 minutes ago, zydeco said:

Capitalism = you get the rewards, if you take the risks, but get the loss when risk goes against you. What you seem to be saying is that you get the rewards without risks. You get your profits, but if the market tumbles, the government should be there to bail you out. Socialism for the bankers and the risk takers when their investments fail. That's your capitalism? 

Profits are private.

Loses are public.

3 hours ago, legend49 said:

Trump even suggested that the 2020 Olympics in Tokyo could be delayed by a year.

 

The CHOSEN one has spoken. I didnt know he was on the Olympics Committee???????

Trump is the only person that matters .

Unless he says it, its completely irrelevant 

That is why we study and discuss his every word so much 

1 hour ago, zydeco said:

Can't believe there is no TVF topic on this, but the Fed has just dumped another $1.5 trillion in money printed out of nowhere on the markets. And the markets still puked. Marshall Trump and Deputy Jerome went swaggering down the street yesterday and thought, "We got this." And they blew their own faces off.  More than a decade of QE 3 and now we get QE 4. The Fed just printing money to make sure the stocks owned by the 1 percent can get juiced again. This Fed and Trump do not care about people or public health. They only care about pumping the markets and trying to reinflate the bubble. Disaster. 

 

 

Its closer to 4 Trillion when you add up the rest its guaranteeing in backstops, repos and purchases etc and thats before any bailouts that many industries are expecting... it didnt have to be this way but it sadly is... the world has simply to tap computer keys now and call it wealth...  we are literally living in a world of make believe ..,, who knows how this giant ponzie scheme ends but i doubt it will be pretty when  it does. 

the public's reaction to Covid-19 is certainly disgusting.

they all go like mindless fools stock up on toilet paper and food, buying shelves empty, selling off stocks like there is literally no tomorrow, all because of a contagious flu with a slightly higher mortality rate.

Covid-19 panickers: I hate you.

1 hour ago, zydeco said:

Can't believe there is no TVF topic on this, but the Fed has just dumped another $1.5 trillion in money printed out of nowhere on the markets. And the markets still puked. Marshall Trump and Deputy Jerome went swaggering down the street yesterday and thought, "We got this." And they blew their own faces off.  More than a decade of QE 3 and now we get QE 4. The Fed just printing money to make sure the stocks owned by the 1 percent can get juiced again. This Fed and Trump do not care about people or public health. They only care about pumping the markets and trying to reinflate the bubble. Disaster. 

 

Agree it's pretty outrageous.  Trump was suggesting another ploy relating to elimination of the payroll tax.  Does Trump have any idea what the payroll tax is for?  It funds social security and medicare,  among other things.  These people running the government have no freakin idea. 

1 hour ago, Chomper Higgot said:

Demand creates jobs.

 

Satisfying the demand creates jobs. Demand creates a need to be satisfied.

 

As opposed to socialism in which jobs are created in the hope their will be demand from a need.

Friday the 13th. Asian stock another day of meltdown. Expect the same in Europe and USA. Nobody will want to hold position over the weekend with so much uncertainty. 

There are two major issues at stake here. One is Corona. Two is the handling of Corona. Many other countries like China, South Korea, have done a good job with containment, and especially with regard to testing. South Korea developed their own test kit in 21 days! In the US, this has been severely bungled from the beginning. First, the administration turned down the emergency funding request from congress, back in early February, saying it was not necessary. Then Trump repeatedly downplayed this, comparing it to the common flu. His repeated denials caused a massive crisis in confidence, that triggered a massive sell off. Had he been smart, and truthful from the beginning, the sell off would have been milder, and $6 trillion dollars would not have been erased from the markets and people's savings. In addition, the US is badly bungling the test kits.

 

So, again the administration is lying. The test kits may be going out, but nobody knows where they are going, and they do not seem to be going to the major hospitals where they are most needed. Lying Pence, and Lying Trump. Causing a massive public health hazard daily. Cases increased in the US by 450 in the past 30 hours, and 41 deaths to date. Total cases now at 1,762 and climbing. 

1 hour ago, tgw said:

the public's reaction to Covid-19 is certainly disgusting.

they all go like mindless fools stock up on toilet paper and food, buying shelves empty, selling off stocks like there is literally no tomorrow, all because of a contagious flu with a slightly higher mortality rate.

Covid-19 panickers: I hate you.

Human nature is it wont happen to me until it does... then its panic... i got prepared in January, stocked up and got out of investments then too... perhaps it is you who hasnt prepared ? your in denial and your ignorance has left you blaming others for not planning for what to many was obvious. 

 

As for the flu comment its 20x as contagious as the flue and proving to be much more deadly in ratio possibly in a magnitude of 100x more deadly.. far more than the worst flu outbreak in living memory in this globalised world. Its likely to be around for years too,  just wait until its spread properly amongst populations with zero immunity and nothing that helps, then there is going to be all the ongoing respiratory issues those who have had it will likely face, maybe to catch it again next season and suffer worse. .. Instead of dismissing something when you know nothing about it try reading some of the experts papers on findings regarding covid19 ...if you understand viruses or pathogens its actually pretty terrifying when you understand the timeline,  implications, features and pattern. Not to mention its already mutated and there are now two strains, no doubt with more to come... you really should learn about something before making silly statements...

Edited March 13, 20206 yr by englishoak

In the 2008 meltdown it was the sub prime crisis in the USA and we knew what we were dealing with. This time its much much worse, its global and we know what were dealing with but the global fall out is unknown

 

CASH IS KING FOLKS never a truer statement

1 hour ago, tgw said:

the public's reaction to Covid-19 is certainly disgusting.

they all go like mindless fools stock up on toilet paper and food, buying shelves empty, selling off stocks like there is literally no tomorrow, all because of a contagious flu with a slightly higher mortality rate.

Covid-19 panickers: I hate you.

It’s not the flu.

8 hours ago, webfact said:

Markets suffer record meltdown as global coronavirus alarm grows

 

just getting started

 

 

don't jump back in just yet ????

 

Edited March 13, 20206 yr by GeorgeCross

3 hours ago, Isaan sailor said:

Take a bow, communist China.  Your Wuhan virus has hit pandemic status.  And world markets bow down to you—way down.

dont worry after this  has  all  passed those wet markets in China and Thailand  will be slaughtering away  happily  again

2 hours ago, tgw said:

the public's reaction to Covid-19 is certainly disgusting.

they all go like mindless fools stock up on toilet paper and food, buying shelves empty, selling off stocks like there is literally no tomorrow, all because of a contagious flu with a slightly higher mortality rate.

Covid-19 panickers: I hate you.

There wouldn't be any panic if the American people could trust the guy in charge.  Unfortunately, he's totally incompetent.  So if you want to hate somebody, hate khun Trump. 

Just wondering whether the banks in America are adequately capitalized with sufficient liquidity. With so much RIPO and injection of funds by the FED, the test will come soon to test their liquidity when the bank runs explode. I heard from friends that the gold and silver markets are getting lots more buy volumes. 

3 hours ago, tgw said:

the public's reaction to Covid-19 is certainly disgusting.

they all go like mindless fools stock up on toilet paper and food, buying shelves empty, selling off stocks like there is literally no tomorrow, all because of a contagious flu with a slightly higher mortality rate.

Covid-19 panickers: I hate you.

 

oh dear.. 23% down, hungry AND a <deleted>ty ass

 

maybe next time you'll listen to the naysayers when they say:

 

"he who panics first, panics best"

 

????????????

 

 

 

2 hours ago, englishoak said:

Human nature is it wont happen to me until it does... then its panic... i got prepared in January, stocked up and got out of investments then too... perhaps it is you who hasnt prepared ? your in denial and your ignorance has left you blaming others for not planning for what to many was obvious. 

 

As for the flu comment its 20x as contagious as the flue and proving to be much more deadly in ratio possibly in a magnitude of 100x more deadly.. far more than the worst flu outbreak in living memory in this globalised world. Its likely to be around for years too,  just wait until its spread properly amongst populations with zero immunity and nothing that helps, then there is going to be all the ongoing respiratory issues those who have had it will likely face, maybe to catch it again next season and suffer worse. .. Instead of dismissing something when you know nothing about it try reading some of the experts papers on findings regarding covid19 ...if you understand viruses or pathogens its actually pretty terrifying when you understand the timeline,  implications, features and pattern. Not to mention its already mutated and there are now two strains, no doubt with more to come... you really should learn about something before making silly statements...

"possibly in a magnitude of 100x more deadly.."  Before you belittle somebody, come with facts and not guesses.

The bankers must be chuffed, knowing they can blame the financial meltdown they've been busy creating for a decade on something so tiny you can't even see it without a microscope.

 

Only this time around, it will be us depositors rather bankrupt governments bailing them out with our savings and retirement nest-eggs.