BlackRock: Global Economy Could Contract By 11% In The First Half Of 2020

BlackRock: Global Economy Could Contract By 11% In The First Half Of 2020

Blackrock’s (BLK.N) managing director Amer Bisat gave the grim forecast of a world wide loss of $6 trillion in economic output due to the Chinavirus (COVID-19) pandemic. Bisat made his comments during a virtual panel discussion moderated by the Carnegie Middle East Center. Blackrock is a key player in the $2.2T CARESAct distribution of money to key industries will be managed by chairman Larry Fink.

Any prognostication on growth for Q1 and Q2 of the Chinavirus crisis is more of a guess than a solid projections at this point because there is no solid end date for the Biowarfare attack. A date of March 31 has been extended to April 30 but there is no sense of permanence to that date. Cascading economic collapse is just starting and will grow exponentially, just like Chinavirus contagion, throughout the society with every passing day.

Markets Collapse On Small Jobs Miss Amid Massive Uncertainty On China Trade, Impeachment, Economic Slow Down

Markets Collapse On Small Jobs Miss Amid Massive Uncertainty On China Trade, Impeachment, Economic Slow Down
Graph of the 1929 crash on Wall Street as part of a timeline from Oct 1928 - Oct 1930

U.S. equity markets are down close to 2% as we write this article due to massive uncertainty caused by the China trade war, possible impeachment of POTUS, and a miss on ADP private jobs data,

The ADP Employment Change for the month of September came in at 135k vs a consensus estimate of 140k. This small miss seems to have fueled worries of an economic slowdown.

The Democrats are pushing ahead with their efforts to impeach President Trump, even though the evidence doesn't support such an effort.

The ISM-NY Business Conditions Index came in at 42.8 vs an estimate of 47.5; the index shows business conditions in the New York area.

Crude oil stocks saw a build of 3.104 million barrels vs an estimate of 1.567M, further spiking slowdown fears.

CD Media has been warning about risk-off coming to the U.S. markets; our fears have become realized.

Subscribe to our evening newsletter to stay informed during these challenging times!!