Market comment 2020

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Ray Dalio, founder of hedge fund Bridgewater Associates, has said corporations in the United States will lose as much as $4 trillion due to the economic damage from coronavirus outbreak. The Trump administration is pushing for a package of some $1.3 trillion in aid to help businesses and individual Americans devastated by the virus, which Dalio said on Thursday should be nearly doubled. The fiscal stimulus package should be $1.5 trillion to $2 trillion as a minimum, depending on the form of the financial relief such as loan guarantees and credits, Dalio told CNBC in an interview. 'We're in an economic downturn. What you're seeing is the inability of central banks to stimulate monetary policy in a way that is normal,' Dalio said in the interview.

Restaurants have felt the hit more than most, after more than 20 states have so far ordered them to close down to customers. Local sites are desperately trying to survive by offering takeout and delivery options, which are still permitted under the orders. Sobering statistics from the National Restaurant Association warn that $225 billion sales could be lost over the next three months, meaning around seven million jobs could be lost in the industry alone. Around 15.6 million people work in the industry in the US leaving around half out of jobs and struggling to make ends meet. Restaurants are already reporting a fall in business by 70 percent, and it's the upscale and fine dining establishments which have been hardest hit. Celebrity chef Tom Colicchio said this week he had to lay off 300 people at his New York Crafted Hospitality restaurant group, which includes popular eateries Temple Court and Riverpark. The news followed an announcement from New York City restaurant giant Union Square Hospitality Group on Wednesday that it had been forced to lay off 2,000 workers or 80 percent of the company's workforce.

 Ray Dalio predicts US companies will lose $4 TRILLION in coronavirus recession | Daily Mail Online