COVID-19 will dominate the week here and offshore for everyone.
Bailouts, support packages will again be at the forefront of events, likewise more cases of infections, deaths and a terrible toll on life as we know it.
Germany will approve the borrowing of 350 billion euros from debt markets, a dramatic move that reverses the country’s aversion to debt.
New York has come to a halt to a halt as the virus ravages the city. Britain is facing a worsening situation. The deepening economic impact and the global policy response.
A quarter of Americans are subject to stay at home or some sort of restriction by government order.
Meetings by the Bank of England (Wednesday) and Reserve Bank of NZ (Thursday) this week will be watched for any further aggressive monetary easing moves.
But seeing both revealed big support packages last week, nothing significant is expected.
The focus is likely to remain on the recent US dollar’s rise, notably in emerging markets with high dollar debt-servicing burdens. Australia’s RBA revealed a $US60 billion swap arrangement with the US Federal Reserve last Friday.
That will provide more greenbacks in the Australian region, which covers much of Asia.
There’s a trio of corporate recapitalisations this week involving Webjet, Flight Centre and oOh!media today and tomorrow.
AMP Chief Economist, Dr Shane Oliver says key to watch for in the weeks ahead will be a peak in the number of new cases in Italy and the US.
On the data front, March business conditions surveys to be released Tuesday for the Australia US, Europe, and Japan won’t be pretty.
They are expected to show a sharp 10-20 point falls reflecting the impact of coronavirus lockdowns on economic activity.
Dr. Oliver says in the US we can expect to see falls in new home sales (Tuesday) and durable goods orders (Wednesday), but a rise in home prices (also Wednesday) and a modest gain in personal spending (Friday).
Unemployment claims (Thursday) are expected to rise sharply for a second week. The core private final consumption deflator inflation is expected to rise slightly to 1.7% year on year in Friday’s so-called PCE report.
Thursday sees the final estimate of 4th quarter US GDP – the first two estimates were unchanged at 2.1%.
Regional Fed surveys and the University of Michigan consumer survey will also be eagerly assessed for virus impact in March.
In Australia, the CBA’s business conditions PMIs for March (Tuesday) are likely to fall sharply as coronavirus lockdowns start to impact and expect a decline in skilled vacancies (Wednesday) from the Australian Bureau of Statistics.
Interim results are expected from Brickworks, Washington H Soul Pattinson and New Hope this week.
Statements from the trio of companies, Webjet, oOh!media and Flight Centre are expected today and tomorrow.
