Mar 22, 2017

What keeps Wall Street money managers up at night

Mark Lennihan/AP

The S&P 500 fell 1.24% Tuesday — the first 1% drop since way back in October. Many market watchers are wondering if this is the official end of the Trump rally, and a survey of money managers circulated yesterday among Bank of America clients gave that some backing.

Reasons for optimism: Investors believe that 2017 will bring us both higher global growth, higher corporate profits, and lower corporate taxes. The highest share of investors see higher Chinese growth over the next twelve months since September 13th, and more than half of respondents say tax reform will get done this year.

Reasons for pessimism: Nevertheless, a higher share of investors say the market is overvalued than at any point since 2000. Furthermore, a plurality think that the eventual trigger for a recession will be Federal Reserve rate hikes. If the Fed raises rates 3 times per year, as it estimates, it will reach 2% by early next year, at which point further hikes could be the catalyst for a recession.

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World coronavirus updates: Governments tighten restrictions to curb cases surge

Data: The Center for Systems Science and Engineering at Johns Hopkins, the CDC and China's Health Ministry. Note: China numbers are for the mainland only and U.S. numbers include repatriated citizens and confirmed plus presumptive cases from the CDC

Japan's Prime Minister Shinzo Abe announced plans to declare a state of emergency and a 108 trillion yen ($990 billion) stimulus package Tuesday, as several governments announced new restrictions amid a jump in cases.

The big picture: The virus is confirmed to have killed almost 75,000 people and infected 1.3 million globally as of early Tuesday, per Johns Hopkins data. Spain has reported the most cases outside the U.S. (more than 136,000) and Italy the most deaths (over 16,000) as half the planet's population is now on lockdown.

Go deeperArrowUpdated 45 mins ago - Health

Boris Johnson in intensive care as coronavirus symptoms worsen

Photo: Peter Summers/Getty Images

U.K. Prime Minister Boris Johnson is being treated in the intensive care unit of St. Thomas' Hospital in London due to increasingly severe coronavirus symptoms.

What they're saying: Cabinet minister Michael Gove told LBC radio on Tuesday morning Johnson was not on a ventilator. "The prime minister has received some oxygen support and he is kept under, of course, close supervision," he said.

Go deeperArrowUpdated 2 hours ago - World

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 1,348,184— Total deaths: 74,834 — Total recoveries: 284,802Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 368,376 — Total deaths: 10,989 — Total recoveries: 19,828Map.
  3. Trump administration latest: President Trump's economic adviser Peter Navarro warned White House colleagues in late January the coronavirus could take over half a million American lives and cost close to $6 trillion, memos obtained by Axios show.
  4. 2020 update: Wisconsin Supreme Court blocks governor's attempt to delay in-person primary voting delayed until June.
  5. States latest: West Coast states send ventilators to New York and other states with more immediate need — Data suggest coronavirus curve may be flattening in New York, Gov. Andrew Cuomo said.
  6. World update: U.K. Prime Minister Boris Johnson moved to intensive care as coronavirus symptoms worsen.
  7. Stocks latest: The S&P 500 closed up 7% on Monday, while the Dow rose more than 1,500 points.
  8. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  9. Other resources: CDC on how to avoid the virus, what to do if you get it.

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