Name: Coronavirus: can we protect markets and companies? | FT
Uploaded: 2020-03-19T23:42:01.000Z
Duration: 14 min 16 s
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So it took a while for global markets and global businesses

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to really get the memo about the coronavirus outbreak.

But I think it's safe to say they have done now.

Global markets have been in freefall for the best part

And global business confidence has collapsed.

Guys, from your points of view, how bad are things?

Jonathan, what is business confidence looking like now?

I think that we're seeing a situation where

some quite large ones, are going to go bust, quite soon.

We'll see very large numbers of redundancies.

And this is really an emergency situation

And they need to act quite strongly and quite powerfully

witnessing quite clearly who's in charge in the world.

And it isn't powerful entrepreneurs and people

governments have really started pulling out all the stops

put together swap lines to try and enhance dollars

flowing around the global financial system.

has absolutely thrown everything at this.

It made a very unusual step of coming in and making

a big announcement right before markets opened on Sunday night.

sitting in New York what's the sense of how

The sense is that the Fed can help at best, modestly.

much you can do by fixing the plumbing, as it were.

So for example, they've done a lot to support the banks.

Most recently they cut the cost of overnight lending

of what they call the Fed's discount window.

And they've cleared their throat loudly with the result

that the large banks have dutifully walked up

Because they don't normally like doing that, right?

you had TARP funds, Troubled Asset Relief Programme funds.

But then the authorities tapped their foot.

And Jamie Dimon and co shuffled up to the TARP window

Similarly, the banks are taking money now.

It's at the fact that, for example, New York City

And they are going to need money next week.

The epicentre of this is the travel industry

on capacity over the winter period, which they expect

to recoup in terms of bookings from the springtime

You can see TUI, which is a huge European travel business,

Airlines around the world are going to go bust.

Central banking is too indirect a means to provide reassurance.

What's needed is very large packages of loan guarantees.

to judge how successful these central bank policies are

from the point of view that they're not trying

But nonetheless, the scale of the decline

that we've seen in stock markets since this massive package came

from the Fed on Sunday has been really something to behold.

I think we closed about 12 or 13 per cent lower on the S&P

So it's really clear to me that investors just

There's quite indiscriminate selling going on at the moment.

And that, again, is building up concerns.

There's going to be more shoes to drop here, right?

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Coronavirus: can we protect markets and companies? | FT

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