Author: JavaExchange

WASHINGTON — The U.S. Congress on Thursday struggled to pass legislation to help Americans cope with the expanding coronavirus crisis, as Democrats planned to push ahead with a wide-ranging bill that Republicans branded as “unworkable.” Read More

Partisan battle erupts in U.S. Congress over coronavirus response — Financial Post

NEW YORK — Any sudden decision by investors to sell shares in credit-focused asset managers and exchange traded funds (ETFs) over concerns about the coronavirus outbreak could put pressure on the managers to sell their riskier assets quickly, the director of IMF Monetary and Capital Markets said on Wednesday. Read More

ETFs, asset managers at risk from sudden sales over coronavirus – IMF official — Financial Post

This practice has been going on since 2013 to meet sales goals. Forced to commit acts of fraud to keep their jobs, tellers opened accounts without the client’s knowledge. This time the Consumer Financial Protection Bureau is filing a lawsuit against Fifth Third Bank for allegedly opening fake accounts without consumer consent. As usually, no one (in upper management) is going to jail.

The CFPB alleges Fifth Third employees created fake deposit and credit card accounts, and transferred money back and forth between consumers’ existing accounts and the fake ones in order to be credited for sales.The Ohio-based Fifth Third’s incentive-based pay structure encourages its employees to “cross-sell” products and convince customers to sign up for more services, the CFPB said.

https://www.cnn.com/2020/03/10/business/fifth-third-cfpb-lawsuit/index.html

Financial markets plunged; Italy ordered nearly all businesses to close; and the World Health Organization declared a pandemic as the virus spread.

Right Now

President Trump said he would be suspending all travel from Europe for the next 30 days starting Friday. The restrictions will not apply to Britain.

The ends the day up more than 1,000 points.

Stocks ended Tuesday’s volatile trading sharply higher, with the Dow Jones Industrial Average recouping half of the prior session’s steep losses, as investors cheered news that the Trump administration was readying stimulus proposals to mitigate the impact of the coronavirus epidemic.

https://finance.yahoo.com/news/stock-market-news-live-updates-march-9-2020-221452310.html

The market fell so fast and so far the rarely (if ever) used CIRCUIT BREAKERS were tripped this morning. Due to Corona and OPEC we are witness to a bit of market history. If you are wondering what a “Circuit Breaker” is the article explains the process. Is it a good time to review your positions in the market. Last week would have been a better time, but yes, now is a good time.

The S&P 500 fell more than 7% Monday, triggering circuit breakers that temporarily helped halt a further plunge.

https://www.cnbc.com/2020/03/09/sp-500-futures-are-frozen-after-tanking-5percent-heres-what-happens-when-circuit-breakers-kick-in.html

DUBAI — Shares of Saudi state oil company Aramco slumped below their initial public offering (IPO) price on Sunday for the first time since they began trading in December, after OPEC’s pact with Russia to restrict oil supplies fell apart. Read More

Aramco shares fall 9%; below IPO price for first time as OPEC pact unravels — Financial Post

Could crude reach under $35 a barrel?

• Oil prices are down 30% for the year as the new coronavirus, COVID-19, slashes global demand forecasts.
• With previously agreed OPEC+ production cuts expiring at the end of March, Saudi Arabia and Russia can theoretically pump as much crude as they want.
• International and U.S. oil benchmarks plummeted to multiyear lows on Friday, with Brent crude closing at $45.27, down more than 9%, and West Texas Intermediate down more than 10%.

https://www.cnbc.com/2020/03/08/opec-deal-collapse-sparks-price-war-20-oil-in-2020-is-coming.html

‘Circuit breaker’ is triggered to keep stocks from disaster. Here’s what happens