Investing

What happened?
• Global share markets continued to fall to start this week with the US share market down 10.8% and the Australian market down 9.7% on Monday, 16 March.
• The US Federal Reserve cut interest rates by 1.5% this month from a range of 1.5% to 1.75% to a range of 0% to 0.25%.
• In Australia the RBA cut rates by 0.25% from 0.75% to 0.5%.
• There are expectations of another cut by the RBA this Thursday 19 March 2020.
• Investors are worried about weakness in the global economy because of:
o more Coronavirus cases outside of China, and
o a collapsed oil price deal.
• This saw investors continue selling their shares because they are concerned about the short-term impact on businesses from these threats.

What happened?

• Global share markets have fallen in the last week as well as the Australian share market.

• Investors are worried about weakness in the global economy because of
o More coronavirus cases outside of China, and
o A collapsed oil price deal

• This saw investors continue selling their shares because they are concerned about the short-term impact on businesses from these threats.

The outbreak of the coronavirus has led to concerns about what its rapid spread could mean for global markets and economies. In this podcast, Hong Kong-based economist Stephen Green discusses the supply-chain disruptions already taking shape, which sectors stand to lose — or gain — from the crisis and how soon “business as usual” might be expected to return to China and global economies.