Europe follows ASX nosedive, after US imposes EU travel ban
European markets continued the global slide after the ASX had its worst daily drop since the GFC with a $127bn nosedive.
- ASX drop worst since GFC
- Virus adds to Caltex fire, flood hit
- Insurance Council declares catastrophe
- Virus threat declared as pandemic
- US firmly in bear market
That’s all from Trading Day for Thursday, March 12. Join us on Friday to follow the market moves.
As at Thursday night (AEDT), European markets are trading and are continuing the global decline.
London’s FTSE 100 was down 5.2 per cent after 15 minutes of trade, while the DAX in Germany dropped 5.5 per cent. The CAC 40 in Paris dropped 2.4 per cent and Italy’s FTSE MIB was 1.6 per cent lower at the open.
In local trade, the ASX finished the session near its lows in another wild day of trade with $127bn wiped off the boards.
Prime Minister Scott Morrison unveiled a $17.6bn stimulus plan, including a $750 one-off payment to welfare recipients while US President Donald Trump imposed a travel ban on flights between Europe for the next 30 days.
That’s after the World Health Organisation declared the coronavirus outbreak to be a pandemic and as Italy’s death toll rose further, the country is taking the extraordinary step to shut all shops, bars and restaurants.
On the ASX, travel names and energy stocks were hardest hit, led by a 10pc drop in Qantas.
9.53pm: ECB expected to offer stimulus
In morning trade European stock markets remain down more than five percent following turmoil across Asia and overnight on Wall Street on heightened fears over the coronavirus pandemic.
By the mid-morning session London’s benchmark FTSE 100 index was down 5.4 percent, Frankfurt’s DAX 30 off 5.8 percent and the Paris CAC 40 tumbled 5.7 percent.
The carnage was felt right across the continent, with stock market indices in Italy, Spain and Switzerland also shedding around 5 percent. All eyes remain on Wall Street where futures are pointing to the S&P 500 opening 4.5 per cent lower.
9.40pm: ECB expected to offer stimulus
The European Central Bank is expected to announce new measures to cushion the economy against the disruption from the virus outbreak when its top officials meet Thursday.
The central bank for the 19 countries that use the euro could lower a key interest rate farther below zero, ease access to cheap credit, and increase its purchases of bonds.
The decision looms as the eurozone is forecast to slide into recession and financial markets keep falling over concerns about the virus outbreak’s hit to the economy. Concerns deepened after the U.S. decided to halt travel from 26 European countries.
The bank’s policy meeting without several members of the 25-seat governing council physically present and participating by remote conferencing. Italian central bank head Ignazio Visco is among them since his country, so far the hardest hit in Europe by the virus outbreak, has restricted movement. The central bank governors of Portugal, Latvia, Lithuania and Estonia are also taking part by remote.
Key measures the ECB could take could include lowering the benchmark rate for deposits from commercial banks to minus 0.6% from minus 0.5%. The negative rate is aimed at pushing banks to lend excess funds rather than pay the penalty rate by leaving them overnight at the central bank.
Another step could be to offer cheap credit to banks on the condition they lend to the small- and medium-sized businesses that could face interruption from closures and lack of parts deliveries due to the coronavirus outbreak. That could take the form of easing conditions to existing long-term credit offers, or a new credit offer primarily aimed at small- and medium-sized business. Yet another measure could be to increase monthly bond purchases with newly printed money from 20 billion euros per month to 30 billion or 40 billion euros, and to shift the purchases more toward corporate bonds.
-AP
James Glynn 8.40pm: Will stimulus prevent recession?
Treasurer John Frydenberg unleashed a significant fiscal stimulus to pull the economy out of a dive towards its first recession in more than 28 years, favouring that over his much-hyped budget surplus.
He deserves to be commended for that. Always resistant to the idea the budget could be doing a lot more to lift the growth rate of the economy, Frydenberg has been prepared in recent years to let that burden fall mostly to the Reserve Bank and the lever of interest rates.
When interviewed last year, Frydenberg was asked if he was concerned the RBA might soon deploy emergency measures such as quantitative easing to support the economy, and he said somewhat alarmingly that it was solely a matter for the central bank.
But that was then. Now, faced with a global shock that looks set to eclipse the global financial crisis, Frydenberg has announced a well-crafted package of measures to keep the economy afloat in the coming months. The Wall Street Journal
Ticky Fullerton 8.15pm: Big business springs to action
When the proverbial hits the fan and there is no toilet roll, the government is turning to big business.
As the market hurtles into bear territory faster than any previous market crisis in Australian history, this is a remarkable change of play.
The importance of this moment should not be understated with a business community wondering how it can regain its once strong reputation within the national psyche.
James Kirby 8.05pm: Bull market dead and buried
The bull market is not just dead, but buried at the crossroads with a stake through its heart.
Traders stripped another 7.4 per cent off the ASX on Thursday taking the market down more than 26 per cent from its recent peak with special treatment for Qantas where a 10 per cent fall means the national airline is now half the price it was at the start of the year.
Indeed, share markets appeared to be entirely resistant to economic stimulus measures - at least initially - as coronavirus fears continues to grip both investors and the wider public.
Locally, traders had hoped for more immediate stimulus measures from the Morrison government while the US government’s muted stimulus package appears to have been neutralised by the Trump administration’s ban on inbound travel from Europe.
As the blue chip stock at the epicentre of the market crisis, a closer look at Qantas tells us much about the wider sentiment across the ASX.
Jacquelin Magnay, in London 7.55pm: Britain’s Chancellor criticises US action
Britain’s chancellor of the exchequer Rishi Sunak was one of the first leaders to comment, criticising the US action for not being the right thing to do and noting the UK would not be adopting a similar approach to ban Europe travellers.
“With regards to flight bans we’re always guided by the science and the advice we’re getting is that there is no evidence that closing borders or travel bans are going to have a material effect on the number of infections,’’ he said.
Mr Sunak added: “The US is still deciding the details. There will be an impact on the demand side of our economy as people are unable to spend on travel.”
While the official European reaction was slow as countries absorbed the enormity and logistics of the ban, Alexander Stubb, the former Finnish foreign minister, tweeted Trump’s decision was “nothing short of irresponsible”. He added that while attempts to contain the coronavirus were welcome, the decisions should be based on facts, not politics.
“Viruses do not recognise borders,’’ he said.
7.40pm: European stock markets dive
European stock markets dived more than 5 per cent at the start of trading on Thursday following turmoil across Asia and overnight on Wall Street on heightened fears over the coronavirus pandemic.
Shortly after the open, London’s benchmark FTSE 100 index was down 5.3 per cent, Frankfurt’s DAX 30 plunged 5.8 per cent and the Paris CAC 40 tumbled 5.7 per cent.
The carnage was felt right across the continent, with stock market indices in Italy, Spain and Switzerland also shedding around 5 per cent
AFP
Lisa Allen 6.50pm: ‘Stop panicking about virus’ Flight Centre boss
The nation’s most powerful travel executive, Graham Turner, the founder of the global travel behemoth Flight Centre, has called on governments and citizens to stop panicking about the coronavirus.
Mr Turner who has watched Flight Centre’s share price tumble from $40 a month ago to $20 said at more than 70 years of age he was more concerned about being locked into a lengthy quarantine than contracting the virus.
“I think anyone with any brains should not be worried about the virus. I am over 70 years, the mortality rates are very low. (But) people should be worried about the (lengthy) quarantine. The disease is not a problem,” said Mr Turner, who trained as a veterinarian before founding Flight Centre.
Ewin Hannan 6.30pm: Companies paying casuals on virus leave
Commonwealth Bank has joined Woolworths and Telstra as big employers pledging to provide paid leave to casual workers impacted by the coronavirus outbreak.
But ACTU secretary Sally McManus accused Scott Morrison of leaving casual workers “cruelly exposed” after the government refused to back special paid leave for casuals impacted by the coronavirus outbreak.
Mr Morrison said on Thursday the government would waive waiting times for casuals to access sickness payments under the welfare system if they were required to be away from work due to the outbreak.
5.21pm: Banks, energy fuel ASX decline
Energy names took another hit on Thursday, with a 8.2 per cent fall, as crude oil prices dropped more than 6.7 per cent.
The 30-day travel ban imposed by the Trump administration on flights between the US and Europe is set to put further pressure on oil prices with less demand for jet fuel.
Even before Mr Trump’s announcement, Caltex flagged flight cancellations as a key demand issue - withdrawing its previousestimates of a 5pc to 10pc decline in jet fuel demand. The stock finished lower by 9.4 per cent to $24.95.
Across the rest of the sector, Santos gave up 7.9 per cent to $4.29 as it argued that the price crash was “not permanent”. Origin dropped 8.3 per cent to $5.50, Woodside shed 9.1 per cent to $19.09 and Oil Search fell 10 per cent to $2.97.
Meanwhile Soul Patts issued a profit warning after the close yesterday, sending shares down 4.5 per cent at the close to $17.94.
Here are the biggest movers for the day:
Perry Williams 5.16pm: Caltex takeover will proceed: RBC
The $8.8bn takeover bid for Caltex by Canada’s Alimentation Couche-Tard will still proceed despite a big share price sell-off following the oil price crash, RBC says.
Caltex stock has fallen 17 per cent this week after the price of crude oil crashed by a quarter following a supply war between Saudi Arabia and Russia.
Still, RBC said the divergence in Caltex’s share price at $27.50 compared with Couche-Tard’s $34.74 ex-dividend bid is overdone “given the likelihood, in our view, of the deal proceeding, with Caltex’s business model, in our view, having relative strength in a global slowdown,” RBC analyst Ben Wilson said. “We think Caltex should be viewed as relatively insulated from the oil and broader market sell-off.”
RBC also pointed to Couche-Tard’s appetite to strike deals in tough economic conditions, noting its $2bn attempt to buy US store operator Casey’s in 2010.
“ACT’s target of doubling EBITDA over a five-year period, driven by a 50/50 mix of organic/M&A opportunities remains intact,” Mr Wilson said.
Caltex earlier warned the slew of flight cancellations amid the coronavirus outbreak was weighing on demand for jet fuel and said its February refiner margin fell to $US4.14 a barrel from $US5.78 a barrel in January. RBC expects Caltex to expand margins over the course of 2020 as the cycle turns during the year.
Perry Williams 4.57pm: Santos lands LNG deal amid oil crash
Santos has landed a significant energy deal in the midst of the oil price crash, selling a 25 per cent stake in the Darwin LNG project and associated Bayu-Undan gas field to South Korean firm SK E&S for $US390m ($603m).
The selldown was first flagged by Santos on October 14 after it scooped up ConocoPhillips’ northern Australia business for $2bn, giving it control of Darwin LNG and Barossa.
Santos will now own 43.4 per cent of Darwin LNG - the second oldest among Australia’s 10 gas export facilities - with SK at 25 per cent, Inpex at 11.4 per cent, Eni at 11 per cent along with Jera and Tokyo Gas.
The deal will be effective October 1 giving Santos $US120m of cashflow from a nine-month period of owning the stake this year.
Crude prices fell up to 6 per cent on Thursday after President Trump suspended travel from Europe to the US, and following Monday’s sharp sell-off are now down 45 per cent since the start of the year.
However, Santos said earlier Thursday it expects energy prices and demand to eventually recover, arguing this week’s price crash was not permanent and part of operating in a cyclical business.
Bridget Carter 4.22pm: WAM cancels share purchase plan
DataRoom | Wilson Asset Management’s listed WAM Active fund has cancelled its share purchase plan and will return money to shareholders who participated in the capital raising.
“All application monies already received under the SPP offer will be refunded in full without interest, per the terms set out in the SPP booklet, with refund transfers commencing from Friday, 13 March 2020,” the company said in a statement.
The company said the decision came on the back of the heightened market volatility.
“ The intended Placement, which was to be conducted at the same price and under the same terms as the SPP, has also been cancelled.”
The SPP was to offer security holders the opportunity to buy up to $30m worth of WAM Active shares at $1.086 each while the placement was to be offered at the same price.
Shares in the fund closed on Thursday at 99c.
4.15pm: ASX drop worst since GFC
The bear market drop on the ASX extended by 7.4 per cent on Thursday to send shares to their lowest levels since November 2016.
Today’s drop eclipses Monday’s 7.33 per cent decline, to be the worst daily drop since the GFC.
Fiscal stimulus measures from the local government and in the US were firmly in focus, accounting for much of the daily swings. Shares opened slightly lower but the decline accelerated as Prime Minister Scott Morrison unveiled a $16.7bn stimulus package to fight of a recession, including a $750 cash boost for households on welfare.
Those falls were exacerbated as US President Donald Trump stopped short of the “major" stimlus that he had previously flagged - pushing shares to lows of 5290 in afternoon trade.
By the close, the ASX was lower by 421 points or 7.4 per cent to 5304.6 its biggest daily fall since October 10, 2008.
4.00pm: Australia vulnerable in “likely” global recession
A global recession is now “likely” and Australia is “vulnerable” in that scenario, according to Franklin Templeton director of fixed income, Andrew Canobi.
“The evidence is now insurmountable as to the scale of the global shock this is, and will be, for growth and activity over and above the humanitarian tragedy,” he says.”After what must be said was a slow and overly-optimistic assessment, central banks and governments are now frantically acting to combat the impact.” He says most central banks will soon reach their effective lower bound of near zero interest rates, and while QE programs and fiscal stimulus will be delivered, he expects that to “largely ineffective”.He also warns of a “large shock” is reverberating across risky fixed income, with high yield bond spreads rapidly widening more than 300 basis points, the most since the last financial crisis. ”Unfortunately, this likely has further to go,” he says. ”No one wants to see another financial crisis (but) unfortunately the parlous stance of world finances and balance sheets leave us in a vulnerable place,” Mr Canobi says.He points to global debt/GDP fo 242pc versus 211pc in 2007, record US Corporate debt/GDP, and Australian household debt/GDP is around its highest and number two in the world. ”The risks remain of another deflationary shock at a time when the much expected post-GFC deleveraging not only didn’t happen but went the other way.”
Bridget Carter 3.39pm: Banks refuse to lock in debt pricing
DataRoom | Some or all of Australia’s top four banks are understood to be refusing to lock in debt pricing terms on mergers and acquisition deals due to the market volatility, casting further doubt on whether live deals currently in the market will proceed.
Private equity firm Pacific Equity Partners and its advisers are continuing to work on its takeover bid for Village Roadshow, currently valued at about $1bn, including debt, while it is also thought to be the case with rival suitor BGH Capital, which has put forward a slightly higher offer.
However, sources spoken to by DataRoom say that sourcing funds from Australia’s top four banks has now become tougher, with the financial powerhouses refusing to lock in rates for deals that may not be finalised for several months.
While pricing could be set for a few weeks, any longer is believed to be proving difficult.
Margins have moved over 100 basis points for debt, and with Quantitative Easing expected, they are likely to contract.
Eli Greenblat 3.36pm: Woolies tightens restrictions
Woolworths is tightening some of the buying restrictions at its supermarkets as panic buying by some shoppers continues to put pressure on supplies in the wake of the coronavirus pandemic.
Woolworths’ current quantity restrictions are:
- Tissues - two pack limit per shop
- Paper towel, serviettes and wipes - one pack limit per shop
- Toilet paper - one pack limit per shop
- Hand sanitiser - two unit limit per shop
- Bulk rice (2kg+) - one pack limit per shop
Woolworths said the new restrictions come as it continues to work closely with its suppliers to get even more product into stores and onto the shelves for customers as quickly as possible.
“Additional orders of toilet paper continue to flow through Woolworths’ store network each day,’’ the retailer said.
“Woolworths is working with suppliers to prioritise the production of smaller packs of toilet paper. This means more toilet paper packs will be available to more customers online and in stores from next week.”
On March 11 Woolworths also introduced changes to its returns policy to help support more customers’ access to high demand essential products in reasonable quantities.
“Woolworths encourages customers to continue purchasing only what they need.”
Eli Greenblat 3.33pm: AFIC cancels shareholder meeting
The nation’s biggest investment company, the $7.5 billion Australian Foundation Investment Co, has cancelled its informal shareholder meetings slated for later this month in Melbourne, Sydney, Canberra, Adelaide and Perth, due to health concerns over the coronavirus outbreak.
AFIC said in a statement to the ASX this afternoon that instead it would hold a teleconference and webcast on March 27 for investors.
It follows similar moves by stablemate listed investment companies Amcil and Mirrabooka who yesterday cancelled their shareholder meetings as social gatherings and large meetings are shunned amid the outbreak.
Perry Williams 3.18pm: Oil drop just part of the cycle: Santos
Oil and gas producer Santos expects energy prices and demand to eventually recover, arguing this week’s price crash was not permanent and part of operating in a cyclical business.
Crude prices fell up to 6 per cent on Thursday after President Trump suspended travel from Europe to the US, and following Monday’s sharp sell-off are now down 45 per cent since the start of the year.
Santos shares were off 6.5 per cent in intraday trading Thursday, capping a 35 per cent fall this week. However, Santos chief executive Kevin Gallagher said it was vital to take the long view.
“Ours is a cyclical business and we must not lose sight of the fact that the current low price and market conditions are not permanent,” Mr Gallagher said. “Demand, and with it, prices, will ultimately recover.”
Santos was among the hardest hit when crude last crashed in 2015 as it struggled with high debt and costly production, pushing it into an equity raising to finance its GLNG project in Queensland.
The company would still be vulnerable to an extended period of low oil prices, although it now produces oil and gas more cheaply and has said it can slow spending on some growth projects to protect itself in a bearish oil price scenario.
Elias Visontay 3.13pm: Australia considers EU ban too
Australian is considering a ban on all travel from European countries in an attempt to prevent the spread of the coronavirus, hours after the US introduced the precaution.
Health Minister Greg Hunt announced the Prime Minister had “referred the question of all travel from Europe to medical experts”.
The Australian Health Protection Principal Committee will now assess the ban and provide a recommendation. “We will continue to follow the medical advice,” Mr Hunt said.
Read more: Trump bans travel from Europe
2.36pm: Charts suggest downside risk ahead
Australian shares are rolling over again after an intraday bounce.
S&P 500 futures can’t go any lower than their -5pc intraday limit. But there are no such limits on the Australian share market.
After breaking the December 2018 trough at 5410 today it has no chart support until 5050 points. That’s 5.5pc below the current level and would leave the index down almost 12pc for the day. If it hits that level today, it would be the biggest one-day fall since the 1987 crash.
The index is currently down 6.5pc at 5353. It fell as much as 7.6pc to a more than 3-year low of 5290 today amid disappointment with Donald Trump’s coronavirus response.
2.15pm: Recession still possible despite stimulus: MS
Scott Morrison’s fiscal response to the virus today was “strong” and “well designed”, with front-loaded cash payments alongside employment and investment incentives, but a technical recession is still possible, according to Morgan Stanley economist Chris Read.
He notes that further policy announcements are likely with a second, broader stimulus on the cards in the May Budget.
The $22.9bn package over the next 2.5 years is worth 1.2pc versus an initial 0.9pc of GDP stimulus at the start of the GFC. The measures are front-loaded, with $11bn expected to be spent in FY20 from the $750 cash payment to 6.5 million beneficiaries (including pensioners and Newstart recipients) on March 31 worth $4.8bn.
Cash flow relief to small businesses, linked to employment is worth $8bn, while business investment incentives including an expansion of the instant asset write-off scheme and an accelerated depreciation program, have a combined worth of $9bn.
“In our view this is a strong fiscal response, significantly expanded in size from what was being suggested in the media even a few days ago,” says Mr Read.
But while the measures are “clearly aimed at trying to avoid a technical recession”, it’s “still possible and highly dependent on the evolution of the virus and response domestically”.
“We also think the measures are correctly targeted - in our view the most important role of Government at this stage is to support the labour market - as this is where severe second round impacts can occur and impact the eventual recovery,” Read says.
“So while the near-term impact of this package might be more limited than usual, it is still increasing the likelihood of an eventual stronger recovery.”
Lisa Allen 2.05pm: Webjet, Qantas lead sell-off
Webjet market capitalisation has dropped by a third this past week, as far-ranging travel bans and the widening coronavirus outbreak prompted the travel group to withdraw its previous guidance.
Today alone, the stock is down by 15 per cent to lows of $5.65 and leading the battering of local travel names after the US banned European flights into the US.
Flight Centre shares are down by 18.4pc while Helloworld is losing 13.5 per cent.
Qantas shares are under pressure too, last down 8.4 per cent to $3.70.
Ben Wilmot 2.00pm: Property no safe haven amid outbreak
Property stocks exposed to the coronavirus and the potential for widespread building closures, as well as a further fall off in the retail trade, were heavily sold off in intra-day trade on Thursday.
Fears about how assets would be affected by the virus were secondary as large capitalisation stocks were sold off and property’s reputation as a defensive play for investors seeking a haven from volatility was hit.
The dramatic falls in property stock prices have hurt many of the larger, previously star performers of the sector, many of which out-performed in boom conditions but are now being tested as both operational factors and sentiment turn against them.
Westfield owner, the Scentre Group, hit $2.75, a 6.29 per cent fall as rival mall owner Vicinity Centres fell 7.3pc to $1.83.
Other sector leaders including the Charter Hall Group were also down, but not by as much, with Charter Hall off by 3.78 per cent to $9.88. Industrial property powerhouse the Goodman Group is down by 4.2 per cent to $13.44.
Stockland is down by 5.82 percent to $4.12 while rival residential developer Mirvac was down by 6.58 per cent to $2.84. Even the conservatively positioned GPT was off by 6.15 per cent to $5.34 and office-focused group Dexus was down by 5 per cent to $11.75.
Global developer Lendlease was off by 5.73 per cent to $14.48, and one of its Singapore trusts said it had an exposure to a complex in Milan, Italy, which is in lock down.
1.42pm: China fares best as Tokyo adds to sell-off
Asian markets are adding to the global sell-off on Thursday, led by a more than 5pc drop on Japan’s Nikkei to its lowest levels since 2017.
The Nikkei was last down 4.5pc, after shedding as much as 5.5pc, while uncertainty drives the safe-haven yen higher to 104.63 against the US dollar.
South Korea’s KOSPI is lower by 3.7 per cent while China’s Shanghai Composite is faring the best in the region, down a more moderate 1pc amid reports more of its local operations were reopening.
Ewin Hannan 1.25pm: Woolworths to pay virus leave
Woolworths will provide paid leave of up to two weeks for employees, including casuals, forced into isolation by the coronavirus or who need to care for children due to school or childcare closures.
Woolworths said employees required to be absent from work due to coronavirus - either due to their own self-isolation, illness or their need to care for others - should not be disadvantaged based on their employment status or the availability of personal leave.
In a memo to staff, the supermarket giant said If employees got the coronavirus, needed to be isolated, or their children were impacted by school or childcare closures, they should consider using personal/carer’s leave.
WOW shares last down 3.8pc to $34.69 despite an earlier rise to $36.73.
1.20pm: Oil prices plunge 6pc on travel ban
Oil prices plunged about six percent Thursday after US President Donald Trump announced a 30-day ban on all travel from Europe to the United States over the coronavirus pandemic.
West Texas Intermediate slipped 6.2 per cent to $US31 a barrel while Brent crude was off 5.8 per cent at under $US34 a barrel.
Both contracts extended heavy losses from a day earlier, which came after Saudi Arabia and Gulf partner the UAE stepped up a price war by vowing to pump millions more barrels of crude.
The 30-day travel ban significantly dents demand for jet fuel, as warned by local producer Caltex earlier today. In a trading update this morning, Caltex said its early estimates of a 5pc to 10pc reduction in demand could be trimmed further.
“Recent reports by airlines, including announcements from Qantas about reduced capacity and services, indicate that demand may drop further in coming weeks,” it said.
With AFP
1.11pm: What would it take to shut the NYSE?
Tonight looks ugly for Wall Street with S&P 500 futures plunging as much as 4.5pc after Trump stopped short of offering a detailed economic rescue package.
As panic selling sets in, perhaps the best thing to do would be to shut the market for a few days and announce significant isolation measures as China did? In the grip of its outbreak, China simply extended its Lunar New Year holidays, effectively shutting its markets for four days as well.
The New York Stock Exchange was automatically halted for 15 minutes on Monday when the S&P 500 fell 7pc. Its rules dictate that if it drops 13 per cent, another 15 minute halt is enacted. At minus 20 per cent it stops for the rest of the day.
But there are plenty of cases of NYSE shutting for days at a time for national emergencies - just not for a virus - yet.
It is worth noting that the local market has no similar triggers built in to stop any freefall.
1.01pm: Shares plunge 6pc
The local market nosedive is picking up pace, as the benchmark ASX200 falls to its lowest levels since November 2016.
At 1pm, the market is lower by 341 points or 6 per cent to 5834.6 - a 26 per cent decline from the recent record high close.
All sectors are pulling lower, with health care losses leading the charge with a 7.6pc blow.
It come as US futures extend their decline in the wake of an underwhelming address from President Donald Trump - now down 4.41pc.
Here’s the biggest movers at lunch:
12.45pm: Travel names pummeled
Travel-exposed stocks are taking a battering in lunch trade, after US President Donald Trump unveiled a 30-day travel ban on flights between the US and Europe.
Qantas shares are down 10 per cent to their lowest levels since August 2016 – marking a 47 per cent drop from its mid-February high of $6.83.
Meanwhile, Webjet is taking a 14.3pc hit and Flight Centre is down 16.4pc.
12.37pm: US futures tumble further
Just as the ASX is tumbling after Trump’s address, so too are US futures – extending an early fall to 3.4 per cent now.
Remember, movements more than 5 per cent are limited on the US futures market – with trade halted in futures earlier this week when the drop hit limit-down.
US stock futures continue plunge after Trump speech https://t.co/8S1EOoiGm3 pic.twitter.com/scY7FokANZ
— Joe Weisenthal (@TheStalwart) March 12, 2020
12.29pm: Shares plunge as stimulus disappoints
Trump’s coronavirus plan has seemingly underwhelmed markets, with the ASX extending its fall to 4.7pc on the news.
The benchmark ASX200 is now at a 15-month low of 5451.6 after paring its intraday fall from 3pc to 2pc before Trump spoke.
The Australian market has just 40 points to go before it his major chart support from the December 2018 trough at 5410. At this rate that could be tested by the end of the day.
S&P 500 futures are down 2.2pc after falling 1.4pc beforehand.
The linchpin of Trump’s plan is to ban US-EU travel for 30 days. He has also asked Congress to increase Small Business Administration funding by $US50bn, told Treasury to defer some tax payments, called on Congress for immediate payroll tax relief and committed to providing $200bn in liquidity.
Presumably the latter point relates to the Fed’s overnight Repo operation, which it boosted from $US100bn to $US150bn on Monday after the S&P 500 fell 7.6pc in its biggest one-day fall since the GFC.
Uncertainty reigns throughout financial markets/community as govts try to balance containment & downside for the economy. What you don't know, you cannot quantify - public health measures need to lead with widespread testing/preventative measures pic.twitter.com/frT8vFMKEe
— Eleanor Creagh (@Eleanor_Creagh) March 12, 2020
12.10pm: Qantas falls further on US travel ban
Qantas shares have extended its daily loss to 7 per cent after US President Donald Trump imposed a 30-day suspension on all flights between the US and Europe.
Shares had been trading down 3pc, but are now down by 6.9pc to $3.76.
12:00pm: ASX pares fall as Trump bans EU travel
The ASX has pared a 3pc intraday fall to 2pc as US President Trump begins his address to the nation.
His first step is to suspend all US air travel between Europe for the next 30 days.
The ban, which exempts the UK, will go into force on Friday midnight ET.
Bridget Carter 11.46am: Buy opportunities aplenty in Media: JPM
DataRoom |Analysts from JPMorgan are keeping close tabs on buying opportunities in the media space.
They say share price declines have outstripped potential earnings downside and present an opportunity for investors at such levels.
They pick out Nine Entertainment as being the most resilient to ad spending declines, while Seven West Media has the most potential upside.
Seven West is heavily laden with debt, but analysts at JPMorgan say that they do not expect the company to fall into receivership.
SWM shares last down 3.7pc to 13c, as NEC trades lower by 1.2pc to $1.30.
11.40am: Woolies, WiseTech lift despite gloom
Woolworths is a rare fleck of green on the local market, as just 12 companies in the top 200 push higher for the day.
The supermarket giant is up by 0.92 per cent, with the $750 one-off payments to welfare recipients perhaps seen as a positive for their performance. That’s alongside a 0.07 per cent pop higher for Coles.
Meanwhile, WiseTech is up 3pc to $13.38 with no news.
11.25am: Bell Potter staff may work from home soon
Bell Potter has cancelled all client meetings and a number of retail advisers are working from home after an employee was confirmed with coronavirus, according to a trader.
“A number of retail advisers have left already,” says a trader at the firm.
“But I think that from tomorrow we could be working from home – they may close the floor for a week after one person said this morning that they have got it.”
11.07am: Markets hope now rests on Trump
The hope of global financial markets now rests with US President Trump and his fiscal response to the virus which is expected later this morning.
Australia’s $17.6bn fiscal package equivalent to 1.2pc of GDP has done nothing to settle the economic gloom gripping Australian markets.
There was no more than a pause in the sell-off in Australian shares as the PM spoke with the ASX200 extending its intraday fall from 2pc to 3pc.
Australian 10-year bond yields pared an 11bps rise to 7bps as he spoke, shying off resistance at 0.80pc.
AUD/USD is back up to 0.6480 after dipping to 0.6471.
Richard Ferguson 11.01am: Households to receive $750 payment
Households with family tax benefits or pensions will receive a one-off $750 payment from March 31 to boost the economy during the coronavirus pandemic.
Scott Morrison said the one-off payments should improve consumer confidence, despite the possibility people who receive the payment will bank it rather than spend it.
“I believe their common sense has demonstrated in the wake, and in response, to previous situations like this that it speaks for itself,” the Prime Minister said.
“The cash payments have two purposes. And they’re both important. Of course, those who received them – that is obviously a benefit to them.
“But more importantly, frankly, it is about a cash injection into the Australian economy, which supports small businesses and supports medium businesses.
Read more: PM unveils $17.6bn virus stimulus package
Key to stimulus effectiveness is how people respond. Using people on existing welfare programs is politically smart, morally credible and economically sensible. These people have a high marginal propensity to consume. So the economy should get the boost immediately
— Warren Hogan (@_warrenhogan) March 11, 2020
10.57am: Is Citi’s revised ASX target too optimistic?
Citi equity strategists have slashed their target for the Australian sharemarket but does it go far enough?
The investment bank cut their year-end target from 7000 to 6100 – that is, 8.6pc above the current level of 5615. Their top-down EPS model estimates a 3 per cent downside risk to the FY20 consensus EPS estimate and a 8pc downside risk to FY21 EPS.
But while downward revisions through the reporting season were modest, they note that few companies have been able to estimate potential impacts of the COVID-19 outbreak on their businesses and they expect downgrades to gradually come through over the next two months.
But But RBA rate cuts are expected to support equity valuations.
“Provided order returns to the market, high valuations, not unlike what we’ve seen in recent times should be reasonably expected,” Citi strategists say.
10.41am: ASX extends decline as PM outlines plan
Prime Minister Scott Morrison has set out a $17.6bn plan to stimulate the local economy in amid the coronavirus outbreak.
“That’s 1.2pc of GDP. This is a significant investment,” he said. “We have taken the decision to put this stimulus in place that has the obvious impact on the Budget outcome for 2019-20 and Australians understand that.”
“Australians know that this needs to be the priority and our government agrees with that priority and that’s why we’ve taken the decision to put these measures in place.”
As he began his speech, the ASX decline accelerated – now down 135.5 points or 2.3pc to 5591.5, after hitting lows of 5582.4.
The Aussie dollar is lower by 0.14pc to US64.75c.
10.40am: US banks urge calm
This isn’t a crisis. The economy is strong. The chief executives of the biggest US banks struck a calming tone Wednesday in a White House meeting with President Trump that was light on policy talk and largely meant to reassure markets.
The banks are in good shape despite the turmoil, their leaders said. “This is not a financial crisis,” said Citigroup CEO Michael Corbat.
Brian Moynihan, chief executive of Bank of America, said banks are in a “great position” on capital and liquidity.
“First thing, fiscal stimulus in the time of stress is absolutely the right answer,” Mr Moynihan said. “The second major thing is, take care of the healthcare problem.” Mr Trump said he would announce Wednesday evening his plans to keep the economy humming and organise a medical response to the growing number of coronavirus cases. He looked past the virus’s spread to what he said would be a quick recovery: “I think there will be a pent-up demand.”
Dow Jones Newswires
10.29am: US futures provide some stock support
Expectations of major fiscal announcements in Australia and the US are providing some support to local shares early.
Futures had predicted a 3.5 per cent drop on the market at the open, but shares fell a more moderate 2pc.
The benchmark has since recovered slightly to be down 1.7pc at 5625.
Announcements of stimulus locally, as well as in the US, seem to be softening some of the blow, just a day after stimulus concerns fed the decline.
Gold stocks are weakest with Newcrest down 5pc after a downgrade to its production forecasts yesterday, and as spot gold fell 0.9pc to $1635 overnight. A slight recovery is under way though, as it rises 0.4pc to $1641 an ounce this morning.
Iron ore miners are also getting hit with BHP down 2pc and Fortescue down 3pc but the major banks have significantly pared early declines to be down less than 2pc.
10.12am: Shares fall further in bear market
The local market is lower by 2 per cent at the open, less than futures had projected, as hopes of US and Australian stimulus help to soften the blow of both markets now in bear territory.
The benchmark ASX200 is lower by 112 points or 1.96 per cent at 5613.8, the lowest intraday level since Christmas 2018.
10.04am: Healius response coming in ‘near future’
Healius has addressed speculation its set to reject a $2bn takeover bid from Partners Group, saying there has been no finalisation of a response to the offer.
After The Australian’s DataRoom this morning reported it was set to pull the pin, Healius says it intends to announce its response to the proposal “in the near future”.
Partners Group bid $3.40 per share for the company in February, valuing Healius at $2.1bn.
Perry Williams 9.47am: Soul Patts downgrades earnings
Washington H. Soul Pattinson expects to suffer a sizeable hit to its half-year profit after flagging lower earnings from its coal, mining, construction material and telco investments.
The conglomerate said its statutory net profit after tax would plunge to between $45m and $55m for the six months to January 31, from $179m a year earlier. Regular profit, excluding non-regular items, would drop to between $120m and $130m, from $186m.
Soul Pattinson’s bulging investment portfolio includes major stakes in Brickworks, TPG Telecom, New Hope Coal, Round Oak Minerals and a collection of investment companies.
While Brickworks has yet to issue its half-year result, the nation’s largest brickmaker owns a stake in Soul Pattinson, which will damage its profit. Under the arrangement, Brickworks holds a 39.4 per cent stake in Soul Patts and Soul Patts owns a 43.83 per cent stake in Brickworks.
TPG saw its underlying profit tumble 30 per cent as its customers migrated onto the NBN.
Coal producer New Hope has also yet to produce its half-year result but its first-quarter revenue was down 51 per cent as coal prices slumped.
9.39am: a2 Milk expands into Canada
Infant milk formula maker a2 Milk is expanding into the Canadian market, today announcing an exclusive licensing agreement with Canadian co-op Agrifoods.
a2 will provide Agrifoods with access to its intellectual property and marketing assets, as well as its proprietary systems and know-how relating to the sourcing and process of its a2 Milk and will work with local Canadian producers to source the milk locally.
“Agrifoods will leverage its substantial capabilities in-market to establish distribution across Canada and has primary responsibility for funding this venture. It is expected that a range of liquid milk products will be launched later this calendar year,” it said.
A2M last traded at $15.50.
9.37am: ASX may drop before fiscal responses
Australia’s sharemarket may drop sharply before US and Australian fiscal responses to the virus today. But anticipation of these responses may lessen the early sell-off and if the spending is large it may trigger a bounce in global markets.
Many investors will now be at the point of panic and considering selling out but it may be better to hedge, potentially on a bounce in the coming days.
Concern about the impact of business shutdowns due to the virus could make a relief rally relatively short lived after fiscal announcements.
Overnight futures suggest the S&P/ASX 200 will open down about 3.5pc near 5525 points which would be a fresh 12-month low. That follows a 4.9pc fall in the S&P 500 to 2741.38 points, about 2pc more than US futures indicated yesterday. But it could hold Monday’s low at 5538.9 and start a short-term bounce.
Many have said markets may bottom or bounce when the WHO finally declared a global pandemic, which it did overnight.
The major chart levels are 5410.2 on the index and 5330 on the SPI, which mark the December 2018 lows.
Trump has flagged his fiscal announcement for 11am AEDT. The size of this package will be the main driver. An Australia’s fiscal stimulus of up to $20bn (1pc of GDP) is expected to be announced at 10.30am.
Eli Greenblat 9.30am: Former DJs chief to lead ARA
Former David Jones chief executive Paul Zahra has been announced as the new chief executive of the Australian Retailers Association as the peak industry group welcomes in new larger retail members and builds itself up as the key voice for the nation’s $320bn retail sector.
Current ARA executive director Russell Zimmerman had announced recently his intentions to retire. He had been in the role for 10 years. Mr Zahra will take up the new role in May.
Mr Zahra is viewed as a career retailer whose previous executive roles have included CEO and Managing Director of David Jones and senior leadership roles at Officeworks and Target. He quit David Jones in 2014 when it was taken over by Woolworths Holdings.
ARA President, Rowan Hodge, said: “We are delighted to have secured a leader of Paul’s calibre to lead the ARA as it strives to bring the industry together and create “One Voice” for small, medium and large retailers.
Gerard Cockburn 9.23am: Virus adds to Caltex fire, flood hit
Caltex has warned the slew of flight cancellations amid the coronavirus outbreak was weighing on demand for jet fuel, even more than it had previously factored in.
In a trading update this morning, Caltex said its early estimates of a 5pc to 10pc reduction in demand could be trimmed further.
“Recent reports by airlines, including announcements from Qantas about reduced capacity and services, indicate that demand may drop further in coming weeks,” it said.
The group said its convenience retail had benefited from stronger industry margin conditions, “which has offset the earnings impact from lower volumes arising from the combination of bushfires, floods and weaker economic activity”.
“It is too early to tell how oil price falls and COVID-19 will impact this market,” it added.
Caltex’s February refiner margin fell to $US4.14/bbl from $US5.78/bbl in January. Refiner margin sales from production results fell to 505ML from 551ML, over the same period.
It has also noted regional refiner margins are at risk of further impacts due to lower global demand.
The company has set its 2020 guidance for its Lytton refinery margins at $4.99/bbl, which is below its 2019 refinery margin at $US7.00/bbl.
9.18am: Insurance Council declares catastrophe
The Insurance Council has declared coronavirus an insurance catastrophe, but stopped short of putting a number on the extent of claims and losses.
It said business interruption and travel claims were its key concerns, pointing out that travel insurance may cover costs of cancellation, depending when the policy was purchased.
“A widespread pandemic, the fear of one, or government controls put in place to control spread, could result in significant interruption for business,” it said of business interruptions.
“The most likely industries to be initially impacted include those that rely on the gathering of large groups of people, or who have significant workforces. For example travel industry operators, airlines, larger corporates, manufacturing, accommodation, shopping malls, CBD based businesses relying on foot traffic and entertainment services.”
The group said an insurance industry taskforce had been formed to ensure that accurate claims data was captured by industry, and that industry positions on the virus can be understood by stakeholders.
That follows the World Health Organisation declaring a pandemic earlier today.
The Insurance Council of Australia has declared a catastrophe for #COVID19 #coronavirus https://t.co/jeSvFwofiN
— Insurance Council (@ICAUS) March 11, 2020
Lachlan Moffat Gray 9.14am: Trump to deliver address at 11am
US President Donald Trump will deliver a prime-time Oval Office address to the nation at 11am on the federal response to the coronavirus pandemic.
Despite President Trump downplaying the seriousness of the disease in recent days, pressure is growing in the government for a more concerted response.
Testifying on Capitol Hill, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, warned that the outbreak in the US is going to get worse.
“I can say we will see more cases, and things will get worse than they are right now,” Fauci told the House Oversight and Reform Committee. Facing questions from politicians, Fauci explained, “It is 10 times more lethal than the seasonal flu.” The hearing was abruptly paused as he and other high-level officials rushed back to the White House for meetings.
I am fully prepared to use the full power of the Federal Government to deal with our current challenge of the CoronaVirus!
— Donald J. Trump (@realDonaldTrump) March 11, 2020
9.05am: Reliance Worldwide CFO exits
Reliance Worldwide chief financial officer Gerry Bollman is set to exit the company, after a restructure of the group’s management.
In a notice this morning, Reliance said it was revising its CFO role and changing its structure following a review, with the search now on for Mr Bollman’s replacement.
“Gerry has made a significant contribution to our strategy, risk management and overall business development since joining RWC in 2016. The revised roles will change our structure and so we have agreed to part,” chief Health Sharp said.
CFO of the group’s Americas segment, Andrew Johnson will step up to the role in the interim.
9.02am: What’s on the broker radar?
- AP Eagers raised to Buy – Morningstar
- Abacus Property raised to Buy – Morningstar
- Breville upgraded to Buy, price target cut 17pc to $21.15 – Bell Potter
- City Chic Collective raised to Overweight – Wilsons
- Computershare raised to Add – Morgans
- Computershare price target cut 25pc to $12.13 – Macquarie
- Flight Centre cut to Underweight – JP Morgan
- Oil Search raised to Neutral – Evans & Partners
- Qantas raised to Buy – Morningstar
- Resapp Health cut to Hold – Morgans
- Senex raised to Overweight – JP Morgan
- Sims Metal Management raised to Buy – Jefferies
- Sydney Airport raised to Buy – Morningstar
- Technology One raised to Outperform – Macquarie
- Woodside raised to Positive – Evans and Partners
8.45am: Virus threat reaches pandemic proportions
The spread of the new coronavirus has reached a pandemic, spanning 112 countries and regions, the World Health Organisation declared, as disruptions to daily life ricocheted around the world.
The WHO generally defines a pandemic as a disease that has become widespread around the world, with an impact on society. The term has been applied to only a few diseases in history — a deadly flu in 1918, the H1N1 flu in 2009 and HIV/AIDS among them.
“We’re deeply concerned, both by the alarming levels of spread and severity, and by the alarming levels of inaction,” WHO Director-General Tedros Adhanom Ghebreyesus said. “We have never before seen a pandemic sparked by a coronavirus.”
Dow Jones Newswires
8.10am: New oil price falls
Oil prices fell 4 per cent overnight with renewed weakness in the stock market after the World Health Organisation said the global coronavirus outbreak is now a pandemic, and as major oil producers announced plans to escalate the burgeoning price war.
Brent crude settled down $US1.43, or 3.8 per cent, at $US35.79 per barrel, while US West Texas Intermediate crude ended down $US1.38 or four per cent at $US32.98.
Risk assets tumbled throughout the day, but accelerated losses late as the number of coronavirus cases increased and numerous countries restricted travel. “What caused the dump in oil prices in the last minutes before the oil market close was when the stock market made new lows,” said Phil Flynn, analyst at Price Futures Group in Chicago. “News on the coronavirus does not seem to be inspiring demand hopes right now.” Both the Organisation of the Petroleum Exporting Countries and the US Energy Information Administration slashed oil demand forecasts because of the coronavirus outbreak, as they now see demand contracting in this quarter. Saudi Arabia and the United Arab Emirates announced plans to boost production capacity following the collapse of co-ordinated output cuts by Saudi Arabia, Russia and others. The Saudi energy ministry has directed producer Saudi Aramco to raise its output capacity to 13 million from 12 million barrels per day.
Reuters
John Durie: 7.33am: Mackenzie joins Shell board
Former BHP chief Andrew Mackenzie will join the Shell board in October, marking his first appointment after stepping down from BHP earlier this year.
Mackenzie was replaced at BHP by Mike Henry.
Mackenzie’s executive career included 22 years with BP before joining Rio in 2004 and BHP in 2008. At BP he worked in exploration and petrochemicals.
Elias Vistonay 7.26am: Stimulus spent quickly
Josh Frydenberg has said the “vast majority” of the government’s coronavirus stimulus package, expected to be worth about $18bn, will be spent by the end of June.
The Treasurer also explained the package, which he had been describing as “targeted”, would target businesses broadly to help with staff payments, as not specifically target sectors particularly hit by the coronavirus outbreak like tourism
Asked how much of the $18bn would be spent this financial year, Mr Frydenberg said: “The vast majority.”
“It’s obviously designed to get that support into the community as quickly as possible,” Mr Frydenberg told Sky News.
7.15am: ASX set to suffer
Australian shares are poised to plunge after another rout on US equity markets overnight as investors wait for the promised major US government stimulus response.
The SPI200 futures contract was down 200 points, or 3.49 per cent, at 5528 at 7.00am on Thursday.
“Markets appeared concerned at the lack of US government response to date, the WHO officially declaring COVID-19 a pandemic, and the number of new cases ex- China rose sharply, Westpac finance’s morning note says.
The Australian dollar was buying US64.87c at 7.00am on Thursday, down from 65.05 US cents from at the market close on Wednesday.
7.03am: US in a bear market
Wall Street stocks suffered another brutal rout Wednesday, pushing the Dow into a “bear market” after the latest series of event cancellations and company warnings rattled investors.
At the closing bell, the Dow Jones Industrial Average stood at 23,551.02, down around 1,470 points, or 5.9 per cent.
The broadbased S&P 500 slumped 4.9 per cent to 2,741.31, while the tech-rich Nasdaq Composite Index shed 4.7 per cent to 7,952.05.
Wednesday’s session puts the Dow down more than 20 per cent from its peak, plunging the index into a bear market.
AFP
6.45am: Trump consider disaster declaration
Congress is quickly unveiling a coronavirus aid package while President Donald Trump is considering a national disaster declaration and new travel advisories as Washington raced Wednesday to confront the outbreak that’s moving dramatically across the country and disrupting the daily lives of Americans.
The swiftly mounting effort to contain the outbreak and financial fallout intensified on a gruelling day as the number of confirmed cases of the infection topped 1,000 in the US and the World Health Organisation declared that the global crisis is now a pandemic. Communities nationwide cancelled public events in the hopes of halting the spread of the infection.
Testifying on Capitol Hill, Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, warned that the outbreak in the US is going to get worse.
6.37am: Britain cuts rates
Britain took bold steps on Wednesday to cushion the economic shock of the coronavirus outbreak, as the government announced a 30bn-pound ($39bn) stimulus package and the Bank of England slashed its key interest rate to a record low of 0.25pc.
UK Treasury chief Rishi Sunak said the new virus sweeping the globe – arguably the biggest economic shock since the global financial crisis 12 years ago – would have a “significant” economic impact, but it would be temporary. “We are doing everything we can to keep this country and our people healthy and financially secure,” Sunak said. “We will get through this together.” In the government’s annual budget, Sunak announced measures including extra funding for the health service, sped-up sick pay and benefits payments for people who are off work, and relief for struggling businesses. He said the government would refund the cost of sick pay to firms with less than 250 employees and would provide cheap loans for small businesses struggling because of the COVID-19 illness.
6.26am: Boeing looking bleak
Boeing is painting a sobering picture for its business in 2020.
The Chicago-based company said Wednesday it has imposed a hiring freeze in response to the virus outbreak that is undercutting air travel and threatening to kill airlines’ appetite for new planes.
It said it received 18 orders last month for new large planes, but 46 orders were cancelled, most of them for the grounded 737 Max, leaving the company with a net loss of 28 orders in February.
Boeing is also restricting employees’ travel and discretionary spending and limiting overtime to work on getting the Max back in flight. Shares of Boeing Co. were down more than 15pc in afternoon trading. They have plunged 55pc in just over a year.
AP
6.09am: US deficit climbs
The US budget deficit through the first five months of this budget year is up 14.8pc from the same period a year ago, keeping the country on track to record its first $1 trillion deficit since 2012.
The Treasury Department said Wednesday in its monthly budget report that the deficit from October through February totalled $624.5bn, $80.3bn higher than the same period a year ago.
The deficit for February was $235.3bn, up a slight 0.6pc from February of last year. The government has recorded a deficit in February for 54 of the past 66 years.
The deficit so far this year reflects government spending that has grown by 9.2pc compared to the first five months of the 2019 budget year while revenues are up a smaller 6.9pc.
When President Donald Trump sent Congress his new budget last month he projected that the deficit for this year would hit $1.08 trillion but will then decline for the rest of this decade. By contrast, the Congressional Budget Office is forecasting that the deficit will remain above $1 trillion over the next decade. These forecasts were made before the coronavirus spread to the United States, a development that is likely to trigger sharp declines in tax revenue and increased government spending to deal with the impact.
The government has not run deficits above $1 trillion except for a four-year period ending in 2012 when a deep recession reduced revenues and pushed spending higher.
Treasury Secretary Steven Mnuchin said Wednesday that the Trump administration is considering a plan to delay the April 15 tax deadline for many individuals and businesses.
AP
6.05am: Coalition makes virus cash splash
Small and medium-sized businesses employing eight million workers will be given up to $25,000 in cash, and instant asset write-offs will be extended to 3.5 million businesses, under a stimulus package worth almost $18bn.
Pensioners will also be the key beneficiaries of a household cash payment to be announced on Thursday, under Scott Morrison’s plan to keep employers afloat and save jobs during the coronavirus crisis.
The first instalment of the plan, which comes on top of a $2.4bn health package, will leave the door open to scaling up the stimulus beyond the budget, should the global health crisis deepen.
The government said most of the package would need to be legislated when parliament returned on March 23, putting pressure on Labor not to stand in the way.
State and territory governments will also be under similar pressure to outline their own stimulus plans when the Council of Australian Governments meets on Friday
ASX 200 trims gains; Goodman, IPH get first strike
'Incredible value' in CFMEU relationship: Cbus CEO. Tech giants 'free riders': CBA boss. Jobless rate steady. IPH, Goodman get first strikes against executive pay. Orica lifts dividends, flags higher FY25 earnings. GrainCorp profit drops.
ASX 200 down; Nuix, MinRes among worst decliners
ASIC warns of broader Cbus-like issues as super gint agrees to Senate hearing. Johns Lyng gets second strike. MinRes to mothball WA mine, 300 jobs impacted. Nuix sinks 20pc-plus despite CEO assurance. WiseTech hit with class action.