This is not government debt, this is simply Central Bank balance sheet per capita (for every person in that country), and the numbers are staggering …
The Bank of Japan has set out a guidance (or target) to buy 6 trillion Yen ($56 billion) worth of exchange traded funds (ETFs) a year, a measure designed to funnel money into the economy. It also has a policy to increase its ETF purchases if market volatility begins to hurt business confidence (as COVID-19 has)
Oil has best month ever
In April, oil prices briefly went negative. May was a different story with WTI Crude, the U.S. oil benchmark, registering its best month ever after gaining 88.38%. Record supply cuts and an uptick in demand pushed prices higher.
U.S. gross domestic product (GDP) contracted 5% in Quarter 1 (Q1) 2020 (vs Q4 2019) but grew 2.1% (vs Q1 2019) on back of economic activity being hit due to the spread of COVID-19. On a long-term average, the numbers aren’t really that bad but Q2 2020 will be far worse …
GDP contracted for the European Union (EU27) by 3.3% in the first quarter (Q1) 2020 (compared to Q4 2019) and by 2.6% (compared to Q1 2019).
GDP contracted for the Euro Area or Eurozone (EA19) by 3.8% in the first quarter (Q1) 2020 (compared to Q4 2019) and by 3.2% (compared to Q1 2019).
Continue reading “European Union Q1 2020 GDP contracts by 3.3% (QoQ) and contracts 2.6% (YoY); Euro Area or Eurozone Q1 2020 GDP contracts by 3.8% (QoQ) and contracts 3.2% (YoY); France, Spain and Italy see largest falls”
UK Q1 2020 gross domestic product (GDP) was estimated to have fallen by 2% in the quarter compared to Q4 2019, the largest fall since Q4 2008.
When compared with the same quarter (Q1 2019) a year ago, UK GDP decreased by 1.6% in Q1 2020 which was the biggest fall since Q4 2009.
COVID-19 cases accelerating
The World Health Organization (WHO) declared COVID-19 a pandemic in March. New cases and fatalities are still growing exponentially. At the end of April there were 3.25 million cases (up from 860,000 at the end of March). The number of fatalities has grown exponentially too to 231,000 at the end of April (up from 42,000 at the end of March).
Strong rebound in stocks
Almost after every crash comes a resounding boom. Continue reading “Highlights from April 2020 – Strong rebound in stocks; Oil prices go negative (for a while); Central Banks announce big bond purchases”
COVID-19 (Coronavirus) now a pandemic
The World Health Organization (WHO) declared COVID-19 a pandemic on the 11th of March. New cases and fatalities are growing exponentially. At the end of March there were about 857,000 cases globally (up from 85,000 at the end of February and 9,500 at the end of January).
U.S. GDP grew at 2.1% in Quarter 4 (Q4) 2019 (vs Q3 2019) and 3.9% (vs Q4 2018).