Credit Suisse sharply cuts Mexico’s 2020 GDP, now sees economy shrinking by 4%

Credit Suisse sharply cuts Mexico's 2020 GDP, sees economy shrinking by 4%MEXICO CITY (Reuters) – Credit Suisse sharply lowered its forecast for Mexico’s economic performance this year and now expects a 4.0% contraction, according to a note sent to the bank’s clients on Tuesday, adding to a series of downgrades since the coronavirus spread.
Previously, the bank estimated that Mexico’s real gross domestic product (GDP) would grow by a modest 0.7% in 2020.
Credit Suisse said the Mexican government could end up lowering a budget surplus target for this year in order to accommodate more spending to address disruptions arising from the coronavirus outbreak.
Latin America’s No. 2 economy had already been stung by weak investment since last year due in part to uncertainty over the policies of President Andres Manuel Lopez Obrador.
Mexican GDP shrank by 0.1% last year, the first annual contraction in a decade, and Lopez Obrador’s first full year in office.
Late last week, Barclays in..

More than 4,500 Delta flight attendants request unpaid leave in April: document

More than 4,500 Delta flight attendants request unpaid leave in April: documentFILE PHOTO: An airport worker guides a Delta Air Lines Airbus A319-100 plane on the tarmac at LAX in Los Angeles, California, U.S., January 6, 2020. REUTERS/Lucy Nicholson(Reuters) – Delta Air Lines (DAL.N) has received over 4,500 requests from flight attendants for voluntary unpaid leave in April, according to a March 14 paper seen by Reuters.
People familiar with the matter said the move was prompted by the depressed travel demand caused by the rapid spread of the coronavirus.
The number of take-ups has now topped 5,000 since the window for requests was extended, they said.
Flight attendants can also bid until March 30 for voluntary leave in the month of May, for May and June, or for May, June and July, according to a separate memo seen by Reuters. Delta, with some 25,000 flight attendants, declined to comment.
Reporting by Tracy Rucinski in Chicago and Akanksha Rana in Bengaluru; Editing by Shri Navar..

Credit Suisse sees 2020 economic contraction in Mexico of 4%

Credit Suisse sharply cuts Mexico's 2020 GDP, sees economy shrinking by 4%MEXICO CITY (Reuters) – Credit Suisse sharply lowered its forecast for Mexico’s economic performance this year and now expects a 4.0% contraction, according to a note sent to the bank’s clients on Tuesday, adding to a series of downgrades since the coronavirus spread.
Previously, the bank estimated that Mexico’s real gross domestic product (GDP) would grow by a modest 0.7% in 2020.
Credit Suisse said the Mexican government could end up lowering a budget surplus target for this year in order to accommodate more spending to address disruptions arising from the coronavirus outbreak.
Latin America’s No. 2 economy had already been stung by weak investment since last year due in part to uncertainty over the policies of President Andres Manuel Lopez Obrador.
Mexican GDP shrank by 0.1% last year, the first annual contraction in a decade, and Lopez Obrador’s first full year in office.
Late last week, Barclays in..

Fed moves to backstop funding for U.S. companies as coronavirus fallout spreads

Fed moves to backstop funding for U.S. companies as coronavirus fallout spreads(Reuters) – The U.S. Federal Reserve moved Tuesday to ensure the flow of credit to U.S. companies, banks and even local governments amid a nationwide scramble for ways to blunt the economic fallout from the coronavirus crisis.
The Fed in the morning announced it would reopen the so-called Commercial Paper Funding Facility to underwrite the short-term loans that companies often use to pay for their operations, a key financial market backstop first set up 2007 to 2009.
At day’s end it extended its reach as the economy’s lender of last resort to the two dozen Wall Street primary dealers who are critical to the functioning of bond and other financial markets. By letting those companies pledge municipal bonds, corporate debt and equity securities as collateral for 90-day Fed loans, the Fed aimed to keep credit flowing to parts the economy that may face an unfolding nationwide cash crunch.
The actions were appr..

U.S. Treasury approves revival of Fed primary dealer backstop

U.S. Treasury approves revival of Fed primary dealer backstopFILE PHOTO: U.S. Treasury Secretary Steven Mnuchin testifies before the Senate Finance Committee during a hearing on Capitol Hill in Washington, U.S., February 12, 2020. REUTERS/Yuri GripasWASHINGTON (Reuters) – U.S. Treasury Secretary Steven Mnuchin on Tuesday said he approved the creation of a new primary dealer credit facility to ease credit market disruptions caused by the coronavirus epidemic, resurrecting the second 2008 financial crisis-era backstop in less than a day.
The facility, managed by the Federal Reserve Bank of New York, will offer loans up to 90 days to the two dozen Wall Street primary dealers who are important conduits for the sale of a broad range of bonds and other financial assets.
Mnuchin said the primary dealer credit facility would be in place for at least six months and may be extended as conditions warrant. Earlier on Tuesday, Mnuchin approved a Fed backstop for the $1 trillion commercial paper m..

Peru miners halt operations to slow coronavirus spread; Chile braces for impact

Peru miners halt operations to slow coronavirus spread; Chile braces for impactLIMA (Reuters) – Miners shuttered or wound down operations in Peru on Tuesday and were girding for extended supply chain disruptions in neighboring Chile as governments tightened restrictions to try to slow the spread of the coronavirus in the resource-rich region.
Pan American Silver said it would temporarily shut four mines in Peru, the industry’s latest response to a 15-day national quarantine imposed by the government.
Peru, the world’s No.2 copper producer after Chile and sixth-largest gold producer, has suspended constitutional rights including free movement and assembly to fight the spread of the highly contagious virus, which as of Sunday had infected 71 people in the country.
Peru’s mining ministry said in a statement on Tuesday that the sector would be given some leeway to carry out “critical” operations during the national emergency period, although with certain safety, health and environmental..

Democrats agree on ‘big immediate action’ to back U.S. airline industry

Democrats agree on 'big immediate action' to back U.S. airline industryWASHINGTON (Reuters) – U.S. House Speaker Nancy Pelosi told the CEOs of U.S. airlines on Tuesday that Democrats agree on the need for “big immediate action” to boost the sagging U.S. aviation industry but have not reached agreement on what a bailout would look like.
FILE PHOTO: An American Airlines Boeing 737 MAX 8 flight from Los Angeles taxis after landing at Reagan National Airport shortly after an announcement was made by the FAA that the planes were being grounded by the United States over safety issues in Washington, U.S. March 13, 2019. REUTERS/Joshua RobertsAirlines are seeking $50 billion in grants and loans in the face of the massive travel slowdown caused by the coronavirus pandemic.
A spokesman for Pelosi said she told the chief executives that “there was agreement on the crucial contribution aviation workers provide to the nation’s economy; the need for big, immediate action; and that assist..

Fed officials flag possible further steps in Fed crisis response

Fed officials flag possible further steps in Fed crisis responseWASHINGTON (Reuters) – Federal Reserve officials are deliberating over next steps in their response to the fallout from the coronavirus epidemic, with some urging a broad debate about how the central bank might help small and medium-sized businesses, policymakers said on Tuesday.
FILE PHOTO: Federal Reserve Board building on Constitution Avenue is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis“At this stage everything is on the table. … Work continues,” Atlanta Federal Reserve Bank President Raphael Bostic said in a phone interview with journalists, just hours after the Fed restarted a key lending program to ensure larger companies can get the short-term loans they often use to pay wages and buy supplies.
A possible next step, Bostic said, could be the resumption of other programs rolled out during the 2007 to 2009 financial crisis, such as the Term Auction Facility that broadened the ability of bank..

Wall Street jumps after Monday’s historic sell-off as Fed boosts liquidity to fight coronavirus effect

Wall Street jumps after Monday's historic sell-off as Fed boosts liquidity to fight coronavirus effectNEW YORK (Reuters) – The S&P 500 rose 6% on Tuesday, clawing back a significant portion of Monday’s steep losses, as the Federal Reserve and the White House took further steps to boost liquidity and stem damage from the coronavirus outbreak that has gripped the global economy.
The U.S. central bank relaunched a financial crisis-era purchase of short-term corporate debt to help companies be able to continue paying workers and buy supplies through the pandemic.
The move to buy back commercial paper followed several emergency measures taken by the Fed on Sunday, including slashing interest rates to near zero.
Also on Tuesday, the Trump administration pursued an $850 billion stimulus package to buttress the economy and mulled sending Americans $1,000 checks within two weeks.
“This issue about liquidity has been a concern, and that’s what they’re trying to alleviate,” said Stephen ..

Fed extends loan offer to primary dealers in further credit easing

Fed extends loan offer to primary dealers in further credit easingWASHINGTON (Reuters) – The U.S. Federal Reserve moved again late on Tuesday to broaden the flow of credit in response to the coronavirus epidemic, saying it would offer short-term loans to the two dozen Wall Street primary dealers who are important conduits for the sale of a broad range of bonds and other financial assets.
The Fed said beginning March 20 it would offer 90-day loans at the same “discount window” rate paid by banks under the Primary Dealer Credit Facility, an action it said would “support smooth market functioning and facilitate the availability of credit to businesses and households.”
Reporting by Howard Schneider; Editing by Chris Reese
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