Diamond News Archives
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WASHINGTON (Reuters) - The Trump administration may take targeted steps to stimulate the U.S. economy amid the coronavirus outbreak that is likely to temporarily drag down some sectors, White House economic adviser Larry Kudlow said on Friday, adding that more information was needed first.
Kudlow, speaking in an interview on CNBC, said it was too early to determine the magnitude of any slowdown but that the nation’s overall economy remained fundamentally strong and that it was not headed for a recession.
U.S. officials were concerned about people who may have to stay home because of the outbreak and lose wages, as well as about small business and airlines, he told Bloomberg News in a separate interview.
“We’re looking for targeted measures that will do the most good in a short period of time,” Kudlow told Bloomberg News.
“To pull that trigger will not take much time at all,” possibly via an executive order, he added, saying more information would likely come next week.
He added that the White House could also turn again to Congress, which this week approved an $8.3 billion bill aimed at efforts to boost the U.S. response to the outbreak, including money for drug and vaccine development as well as the public health efforts.
Reporting by Tim Ahmann and Susan Heavey; Editing by Chizu Nomiyama and Nick Zieminski
Our Standards:The Thomson Reuters Trust Principles.[1]...
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"Bond King" and DoubleLine Capital CEO Jeffrey Gundlach[1] said Thursday that he believes the Federal Reserve panicked in cutting interest rates earlier this week and that short-term U.S. rates are headed for zero.
"If we look at history, once the Fed does a panic, inter-meeting rate cut, particularly when it's 50 basis points ... they typically cut pretty quickly again," Gundlach said. "I'm in the camp that the Fed is going to cut rates again, perhaps even in two weeks" during its regularly scheduled meeting.
The benchmark 10-year Treasury note yield hit an all-time low[2] under 0.9% just after the longtime bond investor made his comments on CNBC's "Halftime Report[3]" around 12:40 p.m. ET. The 2-year U.S. rate hit also hit a record low of 0.554% earlier in the session.
"We will see short rates headed toward zero," Gundlach added. And "when I say panicked, it doesn't mean it's not justified. Sometimes panic is justified."
"Business activity is likely to contract," he said. "I received multiple emails today of clients that were planning on visits to DoubleLine saying they're canceling them."
Although President Donald Trump has spoken fondly of negative interest rates, Gundlach said he doesn't think the Fed is likely to follow the route taken by Japan and some countries in Europe.
On Tuesday, the Federal Reserve lowered its benchmark interest rate unexpectedly by 50 basis points[4], saying that the spread of the coronavirus "poses evolving risks to economic activity." The move marked the first time since the financial crisis that the U.S. central bank was forced to impose an emergency rate cut.
The action failed to ease stock market concern[5] about the potential economic impact of the coronavirus outbreak, however,...
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![[https://m.wsj.net/video/20200304/csurveil0305/csurveil0305_167x94.jpg]](https://m.wsj.net/video/20200304/csurveil0305/csurveil0305_167x94.jpg)
The three main reasons behind the Federal Reserve’s interest rate cuts on Tuesday help explain why the central bank is likely to lower rates again.
The Fed hoped to boost public confidence, prevent financial conditions from worsening and cushion the U.S. economy against a global growth downturn.
While the rate cut may help on each of those... ...
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(IDEX Online) - More than 500,000 diamond workers are threatening strike action in Surat, India, to demand an end to "unfair" taxation.
They're planning three days of walkouts and closures from 15 March in the world's cutting and polishing capital, according to the Times of India.
Last year 13,000 diamond workers in the city were laid off because of weak market conditions.
The Surat Ratnakalakar Sangh, an association of diamond polishers, said production had been slashed in recent months and workers were being further hit by a professional tax imposed by the Gujarat state government.
The association's president, Jaysukh Gajera, said: "About 5.5 lakh (550,000) workers will stay away from work on March 16 to demand the abolition of professional tax. We are appealing unit owners to support workers by keeping their units shut for a day."...
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A man looks for products at a supermarket after panic buying due to the Coronavirus.
Chris Putnam | Barcroft Media | Getty Images
Colorado has yet to report any cases of the new coronavirus in the state, yet consumers there are already stockpiling more powdered milk and cans of soup than in Washington state, where at least nine people have died due to the virus[1].
But Coloradans aren't the only ones stocking up on canned goods and cleaning supplies.
Hand sanitizer sales have skyrocketed 619% nationwide in the week ending March 1, according to data from marketing firm Catalina, which compared the sales of 33 products to the same period a year ago. Disinfecting cleaners and wipes have seen their sales more than double. Grocery store and retailers are trying to prevent shortages from "panic buying"[2] as more cases of the virus are confirmed in the United States.
Across all 50 states, Washington, as the only state with reported deaths from the COVID-19 virus so far, is seeing the biggest sales spikes in shelf-stable food products and cleaning and medical supplies, Catalina data found. Hand sanitizer sales have surged 836%. Powdered milk sales have nearly quadrupled, and chlorine bleach sales have more than doubled. Sales of dried beans and grains, as well as rice, have climbed 84%.
California, as the state with the most overall cases, has experienced similar trends. John Bagan, the chief merchandising officer of Gelson's, the upscale southern California grocery chain, said that sales for shelf-stable products and health and first aid supplies began picking up last week.
Consumers are buying up items like disinfecting wipes, beans, pasta, tuna and toilet paper....