ISM Mfg.

Headline ISM 50.1 vs Expectations of 50.5 not so bad . new orders thoough dropped to 49.8 from 52 Employment unchanged for month and prices paid dropped to 45.9 vs 53.3 Dis-inflation worries growing? Exports held in above 50 but Imports lowest since 2009 at 42.6 vs last month 51.2 ,the biggest monthly drop on record (BBG)Comments from ISM “Coronavirus is wreaking havoc on the electronics industry”

News:

Sen. Grassely said if necessary we may Consider Virus related tax relief if necessary a bit of Fiscal Stimulus if enacted

Italy will hike deficit forecast to 2.4% from 2.2% on virus – report( would expect more European countries to follow this example)

From Morgan Stanley Stable “return to work” traffic: Passenger traffic picked up by 1.3% DoD on average last weekend (vs. 1.2% on average in the previous 5 days). Among people who left tier-1 and tier-2 cities during the two weeks before LNY, 58% have returned on Mar 1 (vs. 47% last Monday). Meanwhile, intra-city traffic congestion on Feb 29-Mar 1 has edged up to 83% of the comparable weekend last year (vs. 81% in Feb 22-23). Showing progress in China’s Return to work

Another Sector that has been under pressure is Corporate spreads both High yield and investment grade as the impacts on companies bottom line being priced into spreads . Graph of YTD returns fro European Corp Bonds both High Yield and Investment grade(IG)(Morgan Stanley)

U.S. High Yield corp bond chart of tech companies remember the higher the prices the more worries about companies ability to pay back loans:

Of Communication companies:

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