Overweight pounds! G20 to launch $5 trillion economic plan
According to the communique of the summit, the G20 will work with the World Health Organization, the International Monetary Fund, the world bank, the United Nations and other international organizations to make every effort to fight the epidemic, focusing on protecting peoples lives and health, ensuring employment and income, restoring confidence, maintaining financial stability and promoting economic recovery, so as to minimize the impact of the epidemic on Trade and economy The impact of the global supply chain and provide assistance to all countries in need, while coordinating public health and fiscal policies.
The G20 will launch an economic plan with a total value of US $5 trillion to deal with the negative impact of the epidemic on global society, economy and finance, and support the central banks in taking measures to promote financial stability and enhance the liquidity of global markets.
The communiqu u00e9 stressed that finance ministers and central bank governors of G20 member countries will coordinate on a regular basis and will further determine a series of emergency action plans to deal with the epidemic at the ministerial meeting in April.
The G20 is committed to working together to increase investment in research and development of vaccines and drugs, and strengthen international cooperation in digital technology and medical science.
The G20 will strive to ensure the cross-border flow of important medical supplies, agricultural products and other goods and services, as well as to solve the problem of global supply chain disruption, and continue to strengthen cooperation in the field of international transport and trade, ultimately creating a free, fair, non discriminatory, transparent, predictable and stable trade and investment environment, and maintaining market openness.
The G20 is concerned that all countries, especially developing countries and the least developed countries, face the risk of the epidemic, and pledges to provide technical, material and humanitarian financial assistance to these countries.
At the end of the communique, it stressed that global solidarity and international cooperation are needed to overcome the epidemic more than ever before. The G20 leaders agreed to hold another meeting as the case may be, and believed that close cooperation will help overcome difficulties and lay a solid foundation for protecting human life, restoring global economic stability and achieving strong, sustainable, balanced and inclusive growth.
President Xi Jinping attended the novel coronavirus pneumonia summit of G20 group in Beijing on the evening of March 26th, and communicated and coordinated the epidemic situation and stabilizing the world economy. Twenty
Xi Jinping made the following 4 initiatives:
First, novel coronavirus pneumonia must be firmly dealt with to prevent and control the global blockade.
Second, effectively carry out international joint defense and joint control.
Third, we should actively support international organizations to play their roles.
Fourth, strengthen coordination of international macroeconomic policies.
Xi Jinping appealed to members of the group of twenty to take joint measures to reduce tariffs, remove barriers and unimpede trade and send strong signals to boost the morale of world economic recovery. We should work out the G20 action plan and make necessary institutional communication and arrangements in a timely manner for the coordination of anti epidemic macro policies.
U.S. stocks rose and the Dow soared 1200 points
After the G20 summit, U.S. stocks soared again, with the Dow up 1200 points, or more than 5%, Boeing up about 16%, leading the way; the NASDAQ up 3.8%, and the S & P 500 up 4.4%.
European markets also rose from decline, with the FTSE 100 index in the UK, CAC40 index in France and DAX index in Germany all turning red.
Gold prices fell, with Comex gold up 1.62%.
FTSE Chinas A50 Index also soared, rising 1.45% as of publication.
Despite the support of the G20 summit, several other big news tonight seems to be less optimistic.
1. US jobless claims hit a record high last week
Last week, 3.283 million people applied for unemployment benefits for the first time in the United States, a record high, far exceeding the record of 695000 people, the highest in history, according to data released by the United States. 1.64 million are expected, compared with 281000 previously. In fact, relevant information has been expected. Previously, California governor Nathan Newson announced on March 25 that more than one million people have registered as unemployed since March 13. The local government is negotiating with the bank to extend the mortgage loan of the unemployed due to the epidemic for 90 days. In addition, White House economic adviser Kudrow said that the national unemployment rate data to be released on the 26th will have a great growth.
2. Powell: the United States may fall into recession, and the Federal Reserve still has policy space
Federal Reserve Chairman Powell made his debut after announcing a 100 point cut in interest rates and gave an exclusive interview on nbctoday. Lets see what he said in his interview tonight:
The US could be in recession. The situation of the virus will determine when the economy will restart, and the priority is to control the new coronavirus. The sooner the virus is contained, the sooner the economy can recover.
We will not run out of policy ammunition. The Federal Reserve still has policy space.
The current situation is not a typical economic downturn, and we are ready to enter into any areas lacking mobility.
Financial support measures are limited to fed lending.
The US economy has no fundamental problems and is expected to recover in the second half of the year.
The Feds actions are not expected to pose a long-term inflation risk.
In terms of efficiency, a $1 financial guarantee is equivalent to a $10 loan.
3. Bank of England keeps key interest rate unchanged at 0.1%
Another noteworthy message is that the Bank of England keeps its key interest rate unchanged at 0.1%, which is in line with market expectations.
The Bank of England said economic activity could plummet. There is little evidence that can be used to accurately assess the impact of the epidemic, and inflation development and inflation expectations will continue to be closely monitored. Many enterprises believe that the current crisis is greater than the financial crisis in 2008.
The global diagnosis is nearly 500000, and the management and control of various countries are upgraded
The novel coronavirus pneumonia confirmed to 491623 cases in Beijing, and the death toll reached 22169, as of 26 hours, 22 hours and 02 minutes in Beijing, according to real-time data released by Johns University.
With the global spread of the epidemic, the Ministry of foreign affairs and the State Administration of immigration said that China decided to temporarily stop foreigners from entering China with current valid visas and residence permits from 0:00 on March 28, 2020. Suspension of entry of foreigners with APEC Business travel cards. Such policies as the suspension of port visa, 24 / 72 / 144 hour transit visa exemption, Hainan visa exemption, Shanghai cruise visa exemption, 144 hour visa exemption for foreigners from Hong Kong and Macao entering Guangdong in groups, and visa exemption for ASEAN tourist groups entering Guangxi, etc. Entry with diplomatic, official, courtesy and C visa will not be affected. Foreigners who come to China to engage in necessary economic, technological and other activities, as well as for urgent humanitarian needs, may apply for visas from Chinese embassies and consulates abroad. The entry of foreigners with visas issued after the announcement shall not be affected.
Affected by the epidemic, Japans economic situation worsened in March, leading to the end of its longest economic growth period after World War II. According to CCTV news, on March 26, the Japanese government released its monthly economic report for March, and lowered its domestic economic judgment to grim situation due to the sharp decline of the current economic situation. Due to the novel coronavirus pneumonia epidemic, the Japanese economic situation has deteriorated rapidly. The performance of the sustained recovery since July 2013 has disappeared after 6 years and 9 months. Japans Daily News analysis, this is considered to be Japans longest sustained economic growth period after World War II, which is likely to enter a recession.
According to foreign media reports, Japanese automakers shut down factories in Europe, North America and Japan one after another, temporarily cutting global production to half due to the sharp drop in global car demand caused by the new coronavirus epidemic. Toyota announced that it would suspend production of seven assembly lines at five plants in Japan from April 3 until April 15, which would reduce production by 36000 vehicles. Mazda announced that its two plants in Japan would be suspended from production for 13 days between March 28 and April 30, with only eight days of daily work. Nissan, Honda and other Japanese car companies have also announced measures to shut down factories.
It is reported that in order to prevent the spread of the epidemic, the Japanese government set up the new crown epidemic response headquarters on the same day, and the first meeting began at about 17:30 local time. Japanese Prime Minister Abe will announce at the meeting that the citizens of Germany, France, Italy, Spain and other European countries are prohibited from entering the country.
A shares stable?
At present, Chinas domestic epidemic prevention and control situation continues to improve, and the order of production and life is accelerating to recover. With the stability of the overseas market, the value of A-share investment has become increasingly prominent.
One noteworthy point is that in the past three trading days, Beishang capital has two trading days of net buying. Today, although a small net selling, Beishang capital is now killing back a shares.
Everbright Securities today made a forecast for the future market of a shares. He believes that after the Federal Reserves efforts to rescue the market and alleviate the liquidity crisis of the US dollar, the A-share market will gradually transition to the stage dominated by the domestic policy economic cycle. Although it is inevitable to continue to be affected by the fluctuation of the US stock market in the short term, this correlation may gradually weaken. After the end of the domestic epidemic, the recovery of industrial production and consumption may be the focus of attention. In the near future, the average daily coal consumption of six major power generation groups is gradually rising, but from the weekly high-frequency sales data of automobiles, the recovery is still lower than the market expectation. In the case of weak data, we need to wait for a clearer loose policy to provide the market with the ability to move. In view of the current relatively reasonable valuation, it is suggested that long-term capital of a share can now gradually enter the market, and the time for value investment has come. Short-term capital can choose the opportunity to absorb low, and continue to wait for the right signal.
Southwest Securities believes that, in terms of epidemic control, as the control measures of various countries begin to be put in place gradually, the probability of the occurrence of epidemic inflection point is rapidly increasing. The daily peak of new diagnosis in Italy is now, and the cumulative peak of diagnosis will be seen in the next two weeks. The latest peak of new diagnosis in the United States will be in mid April. The inflection point of the epidemic is near.