On Wednesday, the financial markets collapsed again as the economic threat caused by the outbreak of coronavirus. All again started to crumble, as politicians on both sides of the Atlantic were unwilling or unable to take aggressive response to her.
S & P 500 fell nearly 6 percent on Wednesday afternoon that put an end to the 11-year period of the bull. On Tuesday, benchmark index of the stock exchange has published its best one-day figures for the year, an increase of almost 5 percent.
“If the administration trump and the Congress can quickly gather all together and make a significant and responsible package, the recession here is a real possibility,” said mark Zandi, chief economist at Moody’s Analytics. He said he saw about a 50 percent chance of a recession next year.
In Europe the major indexes in Frankfurt, London and Paris fell, abandoning the early growth after the Bank of England said it will cut interest rates to help British businesses. Stocks in Asia also fell.
Economic damage only begins to occur due to disruptions in supply chains, travel and entertainment, exacerbated by a price war in the oil industry.
President Donald trump said that he plans to make an official statement to the nation from the Oval office at 9 PM. Eastern time.
“We are going to solve the problem,” said Mr. trump reporters early in the day before the meeting at the White house with the heads of banks. “If we get rid of the problem, it will just go away”.