{"id":40558,"date":"2020-03-20T23:27:21","date_gmt":"2020-03-21T04:27:21","guid":{"rendered":"http:\/\/prefblog.com\/?p=40558"},"modified":"2020-03-20T23:27:21","modified_gmt":"2020-03-21T04:27:21","slug":"march-20-2020","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=40558","title":{"rendered":"March 20, 2020"},"content":{"rendered":"
\"unicorn_200320_1\"<\/a>
\"deadcatbounce_200320\"<\/a>
\"Unicorn<\/a><\/div>\n

Equities had another lousy day<\/a>:<\/p>\n

A brief semblance of stability in stock markets melted away on Friday, ending a disastrous week for North American equities, as the signs of economic carnage wrought by the fight against the coronavirus pandemic started to come into view.<\/p>\n

The S&P\/TSX Composite Index ended the trading day down 2.6 per cent, while the S&P 500 index dropped by 4.3 per cent, capping off the worst week for Canadian and U.S. stocks since 2008, each having lost 14 to 15 per cent.
…<\/b>
Canadian energy stocks initially led a market rally on Friday morning after reports that the federal government is preparing a $15-billion support package for the sector, which has been decimated by the twin spectres of the COVID-19 crisis and plunging crude oil prices.<\/p>\n

But the global oil market resumed its descent on Friday afternoon, as West Texas Intermediate dropped by 11 per cent on the day to settle at US$22.53 per barrel.<\/p>\n

Crude futures have now declined by 64 per cent since their January peak.
…<\/b>
The collapse of crude prices has devastated the energy component of the Toronto Stock Exchange, which has declined by 70 per cent just since the start of the year. Going back to the sector\u2019s last major peak in 2014, the S&P\/TSX Capped Energy Index has lost more than 85 per cent of its market value.
…<\/b>
Friday was the one-month mark since the Canadian stock market last registered a record high on Feb. 20. In the chaotic month that followed, the domestic benchmark index dropped by 34 per cent, wiping out more than $1-trillion in market capitalization.
…<\/b>
The containment measures required to flatten the curve on coronavirus infections ensure that a severe economic slowdown is taking hold. U.S. GDP growth is expected to fall by 8 per cent in the second quarter, while in Canada the decline will be closer to 11 per cent, Mr. [Jean-Fran\u00e7ois] Perrault [chief economist at Scotiabank] said.<\/p><\/blockquote>\n

You might as well get sick if there are no jobs<\/a>:<\/p>\n

Prime Minister Justin Trudeau says the federal government has received 500,000 applications for employment insurance, compared to just 27,000 for the same week last year.<\/p><\/blockquote>\n

In fact, maybe you should get sick now and beat the rush<\/a>:<\/p>\n

A new study by some of Ontario’s leading medical researchers paints an alarming picture of the strain on the health-care system as the number of COVID-19 cases continues to rise, suggesting the province will run out of intensive-care beds and ventilators in just 37 days, even if it manages to cut current infection rates in half.
…<\/b>
The study authors acknowledge their modelling is based on a number of key assumptions:<\/p>\n

They begin with a starting point of 250 cases, which Ontario hit Thursday.
\nThey assume that 19 per cent of cases will require hospitalization.
\nThey assume that 26 per cent of hospitalized patients will require an ICU bed.
\nThey assume an average ICU stay will be eight days long.
\nWith those assumptions in mind, they predict the following outcomes:<\/p>\n

If Ontario can free up 25 per cent of ICU beds for COVID-19 patients, resources will be depleted in 37 days.
\nIf 75 per cent of ICU beds can be allocated to COVID-19 patients, resources can last 52 days.
\nIf, on top of 75 percent of ICU beds, Ontario can make available some 2,000 more beds and 600 additional ventilators, resources can last 60 days.<\/p><\/blockquote>\n

S&P downgraded Air Canada<\/a>:<\/p>\n

\n