Glacier FarmMedia COVID-19 & the Farm

Global Markets: More economic stimulus needed to fend off depression

By MarketsFarm

WINNIPEG, May 26 (MarketsFarm) – The following is a glance at the news moving markets in Canada and globally.

– Outgoing Bank of Canada Governor Stephen Poloz commented on Monday that the Canadian economy continues to require large amounts of economic stimulus due to the COVID-19 pandemic. Poloz, who steps down next week, warned the stimulus is required to help ward off deflation, which is something that could lead to an economic depression. In recent months the central bank slashed its key interest rate to near zero, acquired large amounts of government debt and injected C$300 billion into the financial sector.

– Aircraft giant Boeing announced on Monday it will lay off about 25 per cent of its workforce at its Winnipeg, Man. fabrication plant in the coming weeks. Of Boeing’s Canadian operations, the Winnipeg plant employs 80 per cent of the company’s 2,000 employees. Boeing has struggled since the grounding of its 737 Max 8 aircraft and by the pandemic. Boeing reportedly failed to sell any passenger jets in April.

– The trading floor at the New York Stock Exchange (NYSE) is set to reopen on Tuesday after it was closed on March 23. However, only a quarter of the usual number of traders will be permitted and they have to meet strict social distancing rules. These include signing a liability waiver, avoiding public transit, wearing face masks, and have their temperatures taken when entering the building. Owned by the Intercontinental Exchange (ICE), the NYSE is one of the few markets that still offer floor trading.

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