on Thursday, will have to go to the uk börshistorien as a ”black Thursday”. For the first time on Thursday, October 29, 1987, was the Stockholm stock exchange’s leading index of 9,15% in.
in This Thursday, beats the old record with a race of 11.1 percent. All of the storbolags stock prices plummeted, and it is only possible to describe the sale as a panic.
on the Other european exchanges ‚ leading index fell dramatically, and stock exchange, in New York city was stopped on a temporary basis.
When trading in New York closed in the evening, american time, the Dow Jones index has fallen by 10 percent and the broad S&P 500 index rose by 9.5 per cent.
Behind the race, there is a genuine concern on the part of the new coronavirusets distribution, in order to use the sparekonomen Leigh Bratts’s words, ”laid bare” the imbalances and weaknesses in the global economy.
this is not a minimum of debts, and, in many countries, the weakness of the banks. Signals for the world’s investors are becoming increasingly bleak, the news is all the more alarming. Stock prices and the stock market trading, it becomes a gauge of the willingness to invest in the world.
it has been brought out is this: is it too late to stop, the world will get to experience as great a recession as the financial crisis more than a decade ago. A lot of states are still in serious debt for having saved their banks, and many banks are still weak.
Leigh Bratt, who is a sparekonom in Nairobi raises a warning finger, for the funds with the corporate bond market, which has been marketed as an alternative to money market funds. That is, they are not, they are far more dangerous, as it is a question of a loan to the company.
Even though the companies giving out the loans are for the most part, are large companies with strong balance sheets and high credit ratings, there are companies that do not. And even the big and powerful companies may have problems if the crisis is prolonged.
the actions of government, local authorities, and the authorities have taken to curb the spread of the virus to the size of the impact on the economy. The governments of Denmark on Wednesday, and the republic of Ireland, on Thursday, decided to shut down schools, forcing many parents to stay at home from work and at the same time, many public sector employees have had to go back home.
the Tourism industry is in for your flight is likely that the industry will make it difficult, at least in the short term.
On Thursday, came the news that the Skistar vinstvarnar, because the company had to close its ski resort in the Norwegian Hotel after a municipal decision, on the basis of the coronavirus.
it is likely that the industry will make it difficult, at least in the short term. Hotels, restaurants, and tourist destinations, therefore, will be forced to notice, and shut-down.
at the same time, the central banks and governments would put in more counter-measures. The european central bank, ECB, left, while its benchmark interest rate unchanged on Thursday, a great disappointment to the financial markets. However, the bank decided, at the same time, to purchase the assets of a staggering 120 billion € 1.300 billion in order to prop up the euro zone economy in the world. Christine Lagarde, the head of the European central bank (ECB). Photo: Michael Probst
for more on the so-called jumbolån, that is, low-cost loans, which the banks will provide in particular for small – and medium-sized enterprises. An additional measure is for the ECB to lower the banks ‚ capital adequacy, which also frees up capital for lending.
so far, the Riksbank does not grabbed hold of this tool. When the governor of sveriges riksbank, Stefan Ingves, earlier in the week, was interviewed by the parliamentary standing committee on finance, he pointed out, however, that the liquidity supply was of the utmost importance, and that the purchase of the bonds, the first thing that was closest to hand, rather than a cut in interest rates.
it will present an additional amending budget devoted to the cause of the coronavirus. This is a series of steps, which was just a couple of weeks ago, would have been unthinkable.
for this to be given time to pay taxes – a way to provide low-cost loans worth tens of billions of dollars.
On Thursday presented the finance minister, Magdalena Andersson on the side of direct support to affected industries, it may be a general bail-out.
the Swedish governments of the world have stoltserat since the 1990s, can thus be broken up. In this way the resulting Andersson for his british counterpart in the wake, which on Wednesday announced an expansionary budget, after more than a decade of belt-tightening.
unlike in the united kingdom, however, Sweden is a low public debt, and is not likely to have any major difficulties to finance the payments to the company or to the public fiscal stimulus.
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