Quantcast
Environmental News for a Healthier Planet and Life

Help Support EcoWatch

Coronavirus Spreads Global Recession Fear

Business
Coronavirus Spreads Global Recession Fear
Traders work on the floor of the New York Stock Exchange on Jan. 27, 2020 in New York City. Spencer Platt / Getty Images

By Jake Johnson

Fears of a financial meltdown at least on the scale of the 2008 crisis intensified Monday as global markets were gripped by panic resulting from the spread of the coronavirus across the globe and the ensuing oil price war launched by Saudi Arabia over the weekend.

"The fear today is about a global recession," said Thomas Hayes, chairman of management firm Great Hill Capital, as markets headed for their worst day since the 2008 crash.


As The Washington Post reported Monday morning: "U.S. futures pointed to heavy losses on Wall Street on Monday. Overseas, London's FTSE 100 fell more than 8 percent to its lowest in three years; Japan's Nikkei index slumped more than 5 percent and Australia's benchmark shed more than 7 percent. Oil prices suffered the sharpest plunge since the 1991 Gulf War, while 10-year U.S. bond yields dropped to a record low as investors sought safety."

While some urged caution in interpreting the meaning of daily market fluctuations, analysts said there is reason to fear that a destructive economic crisis is on the horizon. Chris Weston, head of research at the Melbourne-based web trading platform Pepperstone, told The Guardian that "there is genuine panic" in the market, noting that he hasn't "seen anything like this for years."

Escalating market turbulence and warnings of a worldwide economic fallout came as the human toll of the coronavirus, officially known as COVID-19, continued to grow. In the U.S., the number of recorded cases surpassed 500 across 34 states and deaths rose to 22 as the Trump administration's lack of preparedness was on full display Sunday morning.

Asked about the White House's plan for the 3,500 passengers and crew members aboard the Grand Princess cruise ship — which is set to dock Monday at the Port of Oakland after 21 people on the vessel tested positive for COVID-19 — U.S. Housing and Urban Development Secretary Ben Carson insisted that "the plan will be in place."

Pressed to elaborate, Carson admitted the plan "hasn't been fully formulated."

U.S. President Donald Trump, for his part, told reporters Friday that he would prefer that the passengers remain aboard the Grand Princess because he doesn't want "to have the numbers double because of one ship," referring to the number of known coronaviruses cases in the U.S.

"This is 25th Amendment stuff," tweeted Jamil Smith, senior writer for Rolling Stone. "Trump won't let people infected off of a cruise ship and into quarantine because he likes 'the numbers being where they are.' He'd rather keep the numbers down than help these folks. This is literally the worst person to be in charge in this moment."

Trump's remarks came just hours after the president falsely claimed that his administration "stopped" the spread of coronavirus in the U.S.

Meanwhile, Italy on Sunday ordered what The New York Times described as "an unprecedented peacetime lockdown of its wealthiest region," restricting movement for as much as a quarter of the country's population as the country struggled to contain the coronavirus outbreak.

"The Italian outbreak — the worst outside Asia — has inflicted serious damage on one of Europe's most fragile economies and prompted the closing of Italy's schools," the Times reported. "The country's cases nearly tripled from about 2,500 infections on Wednesday to more than 7,375 on Sunday. Deaths rose to 366."

Reposted with permission from Common Dreams.

In an ad released by Republican Voters Against Trump, former coronavirus task force member Olivia Troye roasted the president for his response. Republican Voters Against Trump / YouTube

Yet another former Trump administration staffer has come out with an endorsement for former Vice President Joe Biden, this time in response to President Donald Trump's handling of the coronavirus pandemic.

Read More Show Less

EcoWatch Daily Newsletter

Climate Group

Every September for the past 11 years, non-profit the Climate Group has hosted Climate Week NYC, a chance for business, government, activist and community leaders to come together and discuss solutions to the climate crisis.

Read More Show Less

Trending

A field of sunflowers near the Mehrum coal-fired power station, wind turbines and high-voltage lines in the Peine district of Germany on Aug. 3, 2020. Julian Stratenschulte / picture alliance via Getty Images

By Elliot Douglas

The coronavirus pandemic has altered economic priorities for governments around the world. But as wildfires tear up the west coast of the United States and Europe reels after one of its hottest summers on record, tackling climate change remains at the forefront of economic policy.

Read More Show Less
Monarch butterflies in Mexico's Oyamel forest in Michoacan, Mexico after migrating from Canada. Luis Acosta / AFP / Getty Images

By D. André Green II

One of nature's epic events is underway: Monarch butterflies' fall migration. Departing from all across the United States and Canada, the butterflies travel up to 2,500 miles to cluster at the same locations in Mexico or along the Pacific Coast where their great-grandparents spent the previous winter.

Read More Show Less
The 30th First Annual Ig Nobel Prize Ceremony on Sept. 17 introduced ten new Ig Nobel Prize winners, each intended to make people "laugh then think." Improbable Research / YouTube

The annual Ig Nobel prizes were awarded Thursday by the science humor magazine Annals of Improbable Research for scientific experiments that seem somewhat absurd, but are also thought-provoking. This was the 30th year the awards have been presented, but the first time they were not presented at Harvard University. Instead, they were delivered in a 75-minute pre-recorded ceremony.

Read More Show Less

Support Ecowatch