Economic news of the week: local and global markets reflect panic

In this edition of the Business Day Spotlight, we look at the economic news of the week and the impact of the coronavirus (Covid-19) on global and local markets.

Our host Mudiwa Gavaza is joined on the line by Dr. Adrian Saville, chief executive at Cannon Asset Managers and professor at the Gordon Institute of Business Science, to talk through the issues.

Saville begins by saying policy makers around the world have not done enough to ease the pressure brought on by the outbreak. Even as central banks, as in US, have cut interest rates down to nothing, this might not be enough he says. Fiscal stimulus or injecting money into economies is what governments should be doing he explains, though in some places like SA, the state may not have the resources to do so.

The discussion ends with a focus on the local economy. Saville says the impact on businesses and certain sectors like the travel and hospitality has been devastating.