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Dow tumbles 730 points as covid-19 flare-ups force states to push back reopening

Econ

Jun 27. 2020

By The Washington Post · Thomas Heath, Hannah Denham · BUSINESS, US-GLOBAL-MARKETS 
Rising coronavirus infections roiled investors on Friday, sending stocks into a sharp decline as big-economy states like Texas and Florida put a pause on reopening to stop the disease’s spread.

The Dow Jones industrial average slid 730 points, about 2.8 percent, to close at 25,015.55. The Standard & Poor’s 500 fell 2.4 percent, to 3,009.005, while the Nasdaq composite dropped 2.6 percent, to 9.757.22

All three indexes ended the week at a loss, with the Dow erasing 3.3 percent and the S&P 500 down 2.9 percent. The Nasdaq shed 2 percent over the five-day run but remains positive for June and 2020.

All 11 sectors of the S&P were in the red, weighed down by financials, energy and communication services. Facebook shares plunged 8.3 percent on news that Unilever – the maker of Dove, Lipton and other well-known brands – would suspend advertising on the social media site through year’s end due to the “polarized atmosphere” on the platform. Unilever joins Patagonia, The North Face and others in boycotting Facebook over its handling of hate speech online.

The Nasdaq technology powerhouses – Apple, Alphabet, Microsoft, Netflix and Amazon – were all down sharply. (Amazon founder Jeff Bezos owns The Washington Post.) Airline stocks took a hit as the spreading virus is expected to crimp travel. Oil prices were down but are still floating near $40 per barrel. 

Goldman Sachs was the biggest drag on the Dow, its shares sliding 8.6 percent, after the Federal Reserve said it will cap dividends and restrict stock buybacks of the big banks as part of a “stress test” and analysis of the impact of covid-19.

“While I expect banks will continue to manage their capital actions and liquidity risk prudently, and in support of the real economy, there is material uncertainty about the trajectory for the economic recovery,” Fed Vice Chair Randall Quarles said in a statement.

Dow component Nike saw shares tumble 7 percent after the sportswear and shoe giant reported a surprisingly big earnings loss. Some analysts believe Nike’s poor showing could be a preview of next month’s corporate earnings season as companies officially announce the financial effects of the coronavirus lockdown.

“June’s stock markets have been dominated by the coronavirus,” said Howard Silverblatt of S&P Dow Jones Indices. “July will be the earnings story. And August will be the election season. Call a chiropractor, and hold on. It will be whiplash time.” 

The sell-off came after Texas and Florida ordered bars to close and imposed new restrictions to mitigate a surge in cases. Arizona, South Carolina, Idaho and other states also are reporting spikes.

Nationwide, more than 122,000 Americans have died of covid-19. And the 2.4 million confirmed cases represents a severe undercount; the head of the U.S. Centers for Disease Control and Prevention estimated Thursday that more than 24 million Americans have been infected.

The decline in stocks comes amid a mixed economic package and political upheaval following last month’s death of George Floyd, a black man who was killed in police custody in Minneapolis. Unemployment is stubbornly high, but consumer spending and orders for durable goods – both key indicators – show signs of a rebound. The Commerce Department on Friday also said personal incomes declined less than feared.

There is sentiment among some financial and political analysts that polls showing a fall in President Donald Trump’s support in key battleground states has narrowed his prospects for reelection. Trump is viewed by many on Wall Street as more friendly to business and the stock market than former vice president Joe Biden, his presumed Democratic rival.

“Two things are driving this sell-off,” said Ivan Feinseth of Tigress Financial Partners. “There’s a dramatic resurgence of covid-19 infections, and secondly, Joe Biden is leading in the polls. People may be willing to accept the idea that four years of a soft economy and mediocre stock market are worth the price of political stability.” 

Stocks are still in the midst of one of their best quarters in decades, helped by slowly reviving economy and a Federal Reserve that has said it is willing to spend trillions of dollars to boost the rebound.

“If the circumstances warrant, we will not hesitate to take additional policy actions to support the U.S. economy and banking system,” Quarles said.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Jurin eyes boosting trade ties with UK

Econ

Jun 27. 2020British Ambassador to Thailand Brian John Davidson, left, pays a courtesy call to Deputy PM Jurin Laksanavisit at Government House on Friday (June 26). Photo courtesy Royal Thai Government website.

By THE NATION

Deputy Prime Minister Jurin Laksanawisit said he had spoken to British Ambassador Brian John Davidson on Friday (June 26) on possible measures of boosting trade between the two countries.

He added that Thailand is also planning to enter negotiations with Britain on a free-trade agreement.

Jurin, who is also commerce minister, added that once the Covid-19 pandemic eases, he will lead a delegation of Thai private sector representatives to the UK for talks on trade and investment.

Meanwhile, deputy government spokesperson Ratchada Thanadirek said bilateral trade between Thailand and Britain is worth Bt220 billion.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Cabinet set to consider Bt80-bn worth of economic recovery projects

Econ

Jun 27. 2020

By THE NATION

The first lot of state projects to be proposed to the Cabinet is expected to use about Bt80 billion of the economic recovery budget, the National Economic and Social Development Council (NESDC) secretary-general Tossaporn Sirisamphan said.

The government has earmarked Bt400 billion of the Bt1.1 trillion economic stimulus package for state agencies to develop projects to revive the virus-hit economy.

Tossaporn said that as of Wednesday (June 24), state agencies had proposed 46,429 projects worth Bt1.45 trillion. However, the working panel tasked with screening okayed 213 projects worth Bt101 billion in the first round, before handing the list to the screening committee, which is expected to cut the projects down to Bt80 billion before tabling them during the Cabinet meeting on July 8.

These projects are expected to create 410,000 jobs.

Of the Bt1.1 trillion stimulus package, Bt550 billion has been earmarked to help those affected by the Covid-19 pandemic, Bt400 billion for reviving the economy and Bt4.5 billion for public health. So far, the disbursement of Bt360 billion was approved.

#ศาสตร์เกษตรดินปุ๋ย : ขอบคุณแหล่งข้อมูล : หนังสือพิมพ์ The Nation.

Somkid pushes to kick-start stalled PPP projects

Econ

Jun 27. 2020Deputy Prime Minister Somkid Jatusripitak, left and Finance Minister Uttama Savanayana.

By The Nation

In a meeting with the public-private partnership (PPP) committee on Friday (June 26), Deputy Prime Minister Somkid Jatusripitak called on state enterprises to take action after PPP projects worth a combined Bt1.09 trillion have stalled due to the Covid-19 outbreak.

He said a little delay is acceptable, but projects should not be postponed by a year. Several PPP investment projects have not been able to get off the ground for six to 10 months. 

Somkid also said he had met with executives of PTT and the Electricity Generating Authority of Thailand on Thursday and asked them to speed up their investment by bringing next year’s projects forward. The investment should also focus on creating more jobs, he said. 

His statement reflects concerns about rising unemployment due virus-induced business shutdowns and sharp economic contraction. The Bank of Thailand recently predicted that the Thai economy this year will shrink 8.1 per cent, the worst ever recorded in history. 

He said that PPP investments should not just concentrate on infrastructure projects, but should also cover social projects, services, medical services, education, public health, tourism and agricultural projects. He also asked the Board of Investment (BOI) to offer more incentives so these projects can lure private investors. 

Meanwhile, Finance Minister Uttama Savanayana said the Covid-19 pandemic was the main cause for the delays, adding that the plan was to always push for domestic investment in order to boost the economy amid export contraction. 

Prapas Kong-led, director general of the State Enterprise Policy Office, said up to 90 PPP projects are in the pipeline worth Bt1.09 trillion.

He said 18 of these projects worth a combined Bt472 billion were on the priority list, and of them, 10 had been delayed by the impact of Covid-19. 

Separately, the PPP committee on Friday approved rules and regulations for PPP projects worth less than Bt5 billion, which is expected to facilitate more investment cooperation between the public and private sectors.