Links 26 May 2020

Global Macro / Markets / Investing:

• The Coronavirus Is Exposing Wall Street’s Reckless Gamble on Bad Debt – New Yorker
• All the Reasons the Stock Market’s Gains Are Not to be Trusted – Barrons
• The world’s biggest investors are warning that the ‘fantasy’ rally will soon come crashing down – Business Insider
• Coronavirus stimulus will be wasted on oil and gas; negative oil prices show fossil fuels are in decline – VOX
• The rental car industry has ground to a near halt. This is what that means for automakers and car buyers – CNN
• UN: Half a billion children have lost access to education because of the coronavirus blockades – Economo
• The Law of Supply and Demand Isn’t Fair – NY Times
• The modern era of globalisation is in danger – FT

Americas:

• Middle-class Americans queue at food banks as US unemployment hits 38 million – BBC
• Why Our Economy May Be Headed for a Decade of Depression – NY Mag
• The Economy Will Not Soon Return to Normal: Here’s Why – The Street
• America’s Unemployment Numbers Are Stabilizing. That’s Not A Good Thing. – Five Thirty Eight
• This chart shows just how much America’s malls are incredibly dependent on struggling retailers – CNBC

Europe:

• Coronavirus: Leading economist warns of 10 years of depression and debt – BBC
• Britain reported a record budget deficit in April – Economo
• How Europe’s big bailout could also help trump the ‘China card’ – SCMP
• British factories report the biggest drop in production in over 40 years – Economo
• EU plans to plant 3 billion trees and massively expand organic farming – New Scientist
• EU urges China to respect Hong Kong autonomy – Hong Kong FP

Asia:

• Pentagon legislation aims to end dependence on China for rare earth minerals – Yahoo
• Did Japan Just Beat the Virus Without Lockdowns or Mass Testing? – Bloomberg
• BlackRock Urged to Divest from China by Right-Leaning Ethics Watchdog – 401k specialist mag
• The vanishing interest income of Chinese banks as an indicator of loan quality problems – VOX
• China Drops Economic Growth Target For The First Time Amid ‘Great Uncertainty’ – Forbes
• China exporters look inwards as virus hits overseas markets – First Post of India
• Xi Says China Won’t Return to Planned Economy, Urges Cooperation – Bloomberg
• Coronavirus backlash adds to trade war and decoupling pressure to fray China’s ties to global system – SCMP

Trans-Tasman:

• ‘Pork barrelling at its absolute worst’: NSW ministers splashed $44m arts cash on Coalition seats – ABC
• Clementine Ford apologises after tweeting ‘coronavirus isn’t killing men fast enough’ – News.com.au
• Bushfire royal commission: ‘Black Summer’ played out exactly as scientists predicted it would – ABC
• Michael Pascoe: The grants scandal vastly bigger than #sportsrorts – New Daily
• China and Australia — who really holds the power? – ABC
• High-speed rail on Australia’s east coast would increase emissions for up to 36 years – The Conversation
• ‘Overpaid’ JobKeeper winners under microscope – News.com.au
• Bain says it will stick with Virgin Australia ‘for the long haul’ – The SMH
• ‘Just a disaster’: Government under pressure to pay spare JobKeeper billions to those overlooked – New Daily
• New govt payment launched for those who lose their jobs – Interest.co.nz
• Economic outperformance shifting back in favour of the Aussies – Interest.co.nz
• PM says trans-tasman bubble waiting for Aussie states to reopen to each other first – Interest.co.nz

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Leith van Onselen
Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

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