Tag: jun 09 2020

Shutdown’s Effects Will Weigh on Economies for Years, says World Bank. Economies of the world’s developing nations will not recover from the devastation wrought by the global shutdown for at least five years, according to a new World Bank study. With the shutdown leading to recessions in these countries, GDP in five years could be...

Consumer Spending Plunges at Record Pace. In April, Japanese households spent 11.1 percent less than they did a year earlier, the sharpest contraction in the country’s consumer rate since at least 2001 when records began being kept. The drop was less severe, however, than the 15.4 percent that had been a consensus among analysts. Consumers...

Factory Activity Slows After Initial Burst. China’s factories have begun humming again after gradually reopening since March. But a steady decline in export orders is slowing the country’s economic revival. The Caixin Manufacturing Purchasing Managers Index (PMI) rose from 49.4 in April to 50.7 in May. Crossing the 50 mark indicates factory activity is growing....

Central Bank Boosts Bond-Buying, Sparks Economic Rally. The European Central Bank expanded its bond-buying initiative from €750 billion to €1.35 trillion, a move that sent European stock markets higher and pushed the euro to its strongest performance against the dollar since March. Under the plan, the bank will buy European government and corporate debt through...

The “Pall on the Malls” which we have long forecast, will continually worsen, as tenants flee and mall owners go bust. Last week, CBL & Associates Properties, which owns 106 malls in 28 states, became the first major retail landlord to miss a bond payment as a result of the economic shutdown. The $11.8-million interest...

Once again, equity markets rise, and we hear comments from the people who destroyed the economy by locking it down, such as Governor Andrew Coumo, who is bragging, “You want to talk about a turnaround – this one, my friends, is going to go in the history books”… while ignoring the hard facts. About 45...

Nursing Homes Nursing Less. The number of people living in U.S. nursing homes has declined in 2020 by an estimated 100,000, or about 10 percent, according to data from various sources. About 44,000 COVID deaths have occurred among residents and staff of the 15,000 long-term care facilities in the U.S., according to data compiled by...

BlackRock, the world’s largest investment management company with an estimated $7.4 trillion in its portfolio, wrote the U.S. government’s economic crisis response plan – before there was even a crisis, reports Wall Street on Parade. In August 2019, at the Jackson Hole, WY, meeting of G7 nations as the global economy was sliding toward recession,...

As we have long forecast, the worst in retail is yet to come. Last week, Simon Property Group, the U.S.’s biggest mall owner, filed suit on 2 June in a Delaware court against Gap Inc., its biggest tenant, for more than $65.9 million in unpaid rent and to ensure future rent payments. Gap leases 412...