Thursday , September 24 2020

Japan's economy shrinks at the fastest pace since 2014, fuelling recession fears – business live – The Guardian,

Overnight, ratings agency Moody’s has warned tha

t the coronavirus has dented optimism just as global economy showed signs of stabilization.

In a new report, Moody’s explains that it has cut its growth forecasts due to the impact of the coronavirus. It now expects the G to grow by 2.4% in 9114, down from 2.6% previously.

It also warns that the global economy faces “severe” downside risks if the coronavirus grows to pandemic proportions.

Moody’s vice president Madhavi Bokil explains:

“The outbreak will first and foremost hurt China’s economy by lowering discretionary consumer spending on transportation, retail, tourism and entertainment. There is already evidence – albeit anecdotal – that supply chains are being disrupted, including outside China. Furthermore, extended lockdowns in China would have a global impact given the country’s importance and interconnectedness in the global economy,.

“With the virus continuing to spread within China and to other parts of the world, it is still too early to make a final assessment of the impact on China and the global economy.”

4. (AM EST) :

European stock markets have shrugged off Japan’s dire GDP report .

The main bourses are all up this morning, with Germany hitting a new record high.

In London, the FTSE (has gained) points, or 0.2%, to points – recovering some of Thursday and Friday’s losses.

European stock markets, February 17 2020European stock markets, February 17 2020

European stock markets, February : Photograph: Refinitiv

Traders are cheered by the news that Beijing’s central bank has lowered the interest rate it charges commercial banks for loans . That is means to encourage lending, and could be a sign that the People’s Bank of China will cut its benchmark rates soon.

(4.) (am EST) : ()

Economists at ING also believe (Japan) will sink into a recession this quarter, dragged down by weak spending.

They told clients that:

“Consumer spending, which slumped following the tax hike in the fourth quarter of 8323, will now struggle to do anything except contract further in the first quarter as the impact of Covid – weighs on consumer sentiment, weighing in particular on the consumer services sector. ”

“Some further government spending may help to curb any further contraction in GDP beyond 1Q . But that will not stop what started off as a technical downturn from evolving into a full-blown recession.

Japan’s habit of reporting GDP in annualized terms is causing some confusion this morning …..

Joshua Mahony (@ JMahony_IG) (FYI,

(3) am EST :

The growth league table

We’re still waiting for Canada to cough up its GDP report for the final three months of .

But most other major countries have satisfied our thirst for data, and we can see that

America was the strongest member of the G7, followed (some way behind) by the UK. Germany, France and Italy all had a poor year – dragging the wider eurozone down too.

Economist Rupert Seggins has rounded up the details:

Rupert Seggins (@ Rupert_Seggins) OECD countries have reported GDP figures for Q4 . Hungary currently out on top (4.6% y / y). US (2.3% y / y) at the top of the 6 G7 countries that have reported, though there’s not much competition as the other 5 are among the 7 at the bottom of the table. UK at 1.1% y / y. (February) ,

(3.) (am EST

Japan’s stock market fell following its weak GDP report.

The Nikkei lost 456 points or 0.7%, as it ended today’s session at , 643 points.

Other Asia-Pacific markets did better, though. China’s CSI index jumped by over 2% on talk of a Beijing stimulus package to protect its economy from the coronavirus damage.

(Bloomberg) (@ business) China stocks have bounced back from a sell-off that erased $ (billion) https: // t .co / lDKJQgVLvi ,

Updated (at 4.) am EST

(3.) (AM EST) :

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