1 April 2020

1) To aid in economic recovery, President Trump is calling for a $2 trillion dollar spending plan to update the country’s infrastructure. Monies would be used to update the country’s roads, bridges and other parts of the physical infrastructure. This would be part of Phase 4 response to the coronavirus crisis. The President said that with interest rates at zero, this is the ideal time to address our declining infrastructure.

2) There are growing fears of the devastation that the coronavirus has and continues to wrought on America’s economy. Layoffs are coming faster than unemployment offices can accommodate, increasing fears about making mortgage and loan payments, malls and shopping centers devoid of people with only the essential commerce. Economist are now forecasting a real GDP growth of negative 9% for the first quarter and minus 34% for the second. There is expected to be 4.5 million filings for jobless benefits this week, which will be the highest in history. While there are hopes for a quick turn around, the damage may be too great to quickly return to the economic boom prior to the virus.

3) Founders of the European Union (EU) have always feared that Italy’s proliferate borrowing would ultimately become the EU’s problem. Now with Italy’s coronavirus problems, the country is having to borrow again to care for its people, in turn pushing up its debt to dangerous levels which the EU will have to cover. This is made doubly critical with other EU member’s economies shaken by the shutdowns from the virus. Presently, Italy’s debt level is approaching 150% of its gross domestic product and may well surpass that.

4) Stock market closings for – 31 MAR 20:

Dow 21,917.16 down 410.32
Nasdaq 7,700.10 down 74.05
S&P 500 2,584.59 down 42.06

10 Year Yield: up at 0.70%

Oil: down at $20.10

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