Gilead Sciences discussed on Ric Edelman


Around the world it's in our prayers go to those who are suffering from this virus as well as their families during this most difficult time but befitting a roller coaster week we do have some hopeful news it was reported this week that Gilead sciences it's a biotech company in Silicon Valley they've got a treatment for the virus that they say helps people recover rapidly even from severe symptoms and the university of Oxford says they've got a vaccine that they think will be approved by September they're already manufacturing the drug so it can be distributed as soon as the FDA gives the okay and the White House announced a strategy to begin leading the country go back to business a three phase program that lets people start to go back to normal the stock market began the week off with losses but it like all this news on Friday the market gained a few hundred points the news isn't all good and we mustn't get ahead of ourselves we can't drop our guard just yet or begin any celebrations by any means people are still getting sick people are still dying and it's not gonna change for several months at least economically we're in the great lockdown five million more people filed for unemployment last week that's twenty two million all told in a single month the unemployment rate is now fourteen percent in February it was three point five and the number of people losing their jobs is expected to more than double by mid summer according to the federal reserve publicists the third largest advertising agency in America says the ad industry is in a down turn worse than two thousand nine there C. E. O. says quote this crisis is going to be unprecedented by its magnitude complexity unless everyone's comparing this crisis to knowing that that was not the right reference the rate of decline has been more dramatic than anything we've seen in the past it's impossible to predict how deeply ad spending will plunge the quarters to come are going to be very tough on quote that's the CEO Publicis advertising is indeed often considered one of the first expenses that companies can cut because it's often seen as discretionary spending I'm a trace of everybody's in a locked out of their house and not going out to restaurants is no need for you to be running an ad promoting your restaurant well that makes sense so no wonder that Facebook and Twitter are both saying business has been adversely affected by the slowdown in advertising trucking companies are also announcing cuts in pay reducing hours for workers pulling back on spending moody's has cut the ratings for overland park one of the biggest trucking companies in America saying the company faces a higher risk of default the global airline traffic is going to drop fifty percent this year according to the international air transport association JPMorgan chase the nation's biggest bank the first report earnings since the pandemic began says its profits in the first quarter fell sixty nine percent the bank is set aside nearly seven billion dollars to cover losses it expects to accrue on consumer and business loans I will forego their first quarter profit fell eighty nine percent Ford says it lost six hundred million dollars in the first quarter more than two hundred sixty companies according to the Wall Street journal of taking on new debt a hundred a furloughed workers seventy of stop paying dividends three hundred companies have withdrawn their financial guidance that's the info they give the Wall Street analysts about how well they think they're doing they just withdrawn with a previously said because everything has become so unpredictable everything is radically and rapidly changing so it's no wonder in all this that in a new survey of mutual fund managers ninety three percent of them say they expect a global recession fifty two percent say the economy will look like you we've been telling you that for a long time we don't see this as a V. shaped economy but rather a U. shaped economy and we're still on the left side of the U. but check this out although fifty two percent agree with me and hear all of us here at element financial engines about a U. shaped economy twenty two percent I think we're going to have a W. the company meaning basically the market recovering and then repeating the climb in the market before we ultimately have our recovery yeah they're predicting a double dip economic crisis well while they're projecting an economy that's in recession the International Monetary Fund says we already are in a global recession with a severity unmatched by anything other than the Great Depression they say this is going to surpass the global financial crisis of two thousand eight and they've now given this the name this is the great lockdown the U. S. economy the IMF says is going to shrink six percent twice as much as it did in nine Europe's gonna suffer even more seven and a half percent reduction in their economy and they project according to the IMF the global economy will rebound next year twenty twenty one I can't happen soon enough technical analysts on Wall Street meanwhile are seeing more pain in the short term they use a variety of technical indicators the two hundred day moving average the Bollinger bands Fibonacci retrenchments all kinds of stuff none of the thirteen technical indicators that are used in four different trading models are showing a single positive sign all suggesting further stock market losses Morgan Stanley this week said the economy won't fully reopen for a year they said quote this week while we understand the desire for optimism we caution that the U. S. outbreak is far from over ten fifty seven economists this week are in agreement with that according to the Wall Street journal they agree also with the fed and are projecting fourteen million more jobs will be lost in coming months twenty two million of already sought unemployment benefits and Oxford economics says layoffs are now going to include business services employees including lawyers architects consultants and advertising professionals including one and a half million non essential health care workers along with a hundred thousand in media and telecom people who previously thought they were safe from layoffs apparently not so and then comes along if I haven't given you enough bad news yes Marilyn singleton she's a physician and attorney the immediate past president of the association of American physicians and surgeons she says that forty percent of women are going to be unemployed thirty seven percent of men half of all the parents who have a child under the age of eighteen all of them have either lost a job or income or soon will and she says this isn't just an economic issue she's a physician after all and she says that for every ten percent increase in unemployment mortality increases one percent cardiovascular disease goes up to percent cirrhosis of the liver goes up one point three percent suicides go up one point seven percent arrests go up four percent and reported assaults go up one percent so how you're feeling well based on this I don't know if you know what to feel should you be excited about the news of treatments and vaccines in the nation re opening soon we should be scared and upset over the current status we're still in well if you're like the majority of Americans you're afraid you might die the Harris poll released last week says fifty six percent of Americans fear they could die from the corona virus three weeks ago fifty six percent said that people are over reacting to invest what a change in just three weeks and sixty two percent say that the economic impact will be even worse than the virus itself twenty seven percent of already miss paying a bill nineteen percent can't pay their mortgage or rent forty two percent of lost income already nineteen percent of lost all their income and sixty percent say they can only survive another one to six months on their current savings one percent so they have no savings at all as of now twenty seven percent have accumulated more debt than normal and thirty three percent have cut back on their retirement savings so how are you feeling about this what's your emotional state well you're probably in a funk you're probably quite sure what to think how to feel given this conflicting bad news coupled with the promise of good news well before you reach any form a conclusion I want you to stay tuned because when we come back on the program I have some more good news for you and a way to get you out of your funk so.

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