Wednesday, 22nd April 2020
Quote of the day : “We will need to be able to help businesses with capital, what we call their solvency,” Bank of France Governor Francois Villeroy de Galhau.
Le Maire said the government would consider tax forgiveness instead of just delays but warned the cost for the state would be huge. Erasing debts could be justified both in terms of protecting jobs and the economy.
Opinion: Expecting SP500 to open tomorrow on the rise even as jobless claims hit higher than expectation. Indeed, the S&P 500 has risen every Thursday for the past four weeks even as applications for unemployment benefits in America surged. That is due to the scale of the fiscal response, as it has been so huge, it’s helped investors see past the pain so far. Receiving now all the economy bad news just when largest economies are moving toward re-opening.
Numbers to watch
· Forecasting 4.5 million more unemployment claims. Data published 15:30 Paris time. The wave of losses which began with restaurant, hotel and factory workers is now hitting office and support workers. Predictions of a 20% unemployment rate are becoming more and more realistic.
· $8 trillion in global fiscal stimulus isn’t enough.emerging-market governments “don’t have that kind of ammunition and fiscal space. Their fiscal packages are more water pistols than bazookas.”
· Europe’s 25 million small and medium sized enterprises -- officially defined as having fewer than 250 staff -- employ more than 90 million people. 55% of small firms are concerned about bankruptcy, and a group representing Irish SMEs says close to 30% won’t survive.