The Daily Shot Brief – March 24th, 2020



United States: The Federal Reserve announced a new set of policy measures designed to stabilize the credit markets and cushion the economic contraction. The scope of some of these actions is unprecedented, going beyond what we saw in 2008.

• Unlimited QE: Purchases of “Treasury securities and agency mortgage-backed securities in the  amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”

• Support for commercial real estate: Including commercial mortgage-backed securities (CMBS) in QE.

• Support for consumers and businesses: Credit facility to provide financing to “employers, consumers, and businesses” ($300 billion).

• Support for corporate bonds: Two facilities to stabilize primary and secondary corporate bond markets. To support the secondary market, the facility will purchase ” corporate bonds issued by investment grade U.S. companies and U.S.-listed exchange-traded funds …” (see description).

• Support for consumer credit: Issuance of debt “backed by student loans, auto loans, credit card loans, loans guaranteed by the Small Business Administration” (TALF 2.0).

• Support for municipal finance:

– Expansion of the Money Market Mutual Fund Liquidity Facility to “include a wider range of securities, including municipal variable rate demand notes and bank certificates of deposit.”
– Including “tax-exempt commercial paper as eligible securities” in the Fed’s commercial paper facility.

• Support for small and medium-sized businesses: “Main Street Business Lending Program to support lending to eligible small and medium-sized businesses, complementing efforts by the SBA.”

Stocks shrugged off the Fed’s announcement and continued to sink. The stimulus bill impasse in Congress weighed on US shares, as the S&P 500 hit the lowest level since 2016.

Source: The Daily Shot


Eurozone: Consumer confidence has deteriorated sharply this month.

Source: The Daily Shot


China: Steel inventories remain elevated (chart below), but the demand is recovering (second chart).

Source: @WSJ; Read full article
Source: Goldman Sachs


Equities: Earnings growth consensus estimates continue to tumble.

Source: Yardeni Research


Global Developments: The global economic contraction is likely to be deeper than in 2008, but the recovery is expected to be faster, according to Oxford Economics.

Source: Oxford Economics


Food for Thought: How long can the coronavirus survive on surfaces?

Source: The Economist; Read full article

Edited by Daniel Moskovits

To receive the Daily Shot Premium, you need to be a subscriber to The Wall Street Journal. The Daily Shot readers qualify for a special membership offer of $1 for 2 months and can join simply by clicking here.

If you are already a WSJ member, you can sign up for The Daily Shot at our Email Center by clicking here.

The Daily Shot Premium is also available online at

If you have any issues at all, please contact a Customer Service representative by calling 1-800-JOURNAL (1-800-568-7625) or sending an email to

Contact the Daily Shot Editor:


Leave a Reply