Here is a summary of the most important events that unfolded last month, and which may affect economic, financial and geopolitical issues in the months ahead:

North America

The last week of February, global markets had the worst week on record since the 2008 financial crisis. After nearly four months of gains and hitting a record high on February 19th, global equities fell over 11% on the week. The S&P 500 lost nearly 13% and the yield on the 10-year US Treasury note hit a record low of 1.114%. Most people attribute the market chaos to the increased spread of the coronavirus outside of China. For the first time, the number of new coronavirus cases outside of China surpasses the number of new cases reported inside of China. As of Monday morning, the death toll topped 3,000 and over 90,000 cases had been reported globally.

US President Donald Trump has requested Congress authorize $2.5 billion dollars to fight the spread of the coronavirus, COVID-19, as the World Health Organization warned of a possible pandemic. Several congressional democrats have said the request is insufficient while others have criticized the President for redirecting funds from the Department of Homeland Security and the Ebola crisis. The Trump administration hopes this new funding package will accelerate vaccine development and support preparedness activities.

Senator Bernie Sanders leads the democratic polls as the US approaches the 2020 presidential election in November. Former Vice President Joe Biden is close behind following his big win at the South Carolina primaries this past weekend. The results of Super Tuesday, on March 3rd, will give a clearer picture of which candidate will win the democratic nomination. If Sanders takes the bid, markets will likely become nervy and skittish of his socialist economic policies.

The US Senate voted to acquit President Donald Trump of abuse of power and obstruction of Congress, bringing a swift end to Trump’s impeachment trial. The outcome had been expected from the start, so markets remained unphased by the verdict.

Europe

German Chancellor Angela Merkel’s Christian Democratic Union (CDU) party will elect a new leader at the end of April. It was expected that current party chief Annegret Kramp-Karrenbauer would seek to become the next chancellor in the 2021 election, but she announced in early February that she would be stepping down. In state elections, the CDU lost 11.2% overall, falling behind the Greens and the Social Democrats.

Russian-backed separatists attempted to seize territory in Ukraine, breaking through the trench line in the region’s two-year gridlocked war. One Ukrainian soldier was killed, and four others were wounded. Ukraine’s government sees the attack as an effort made by Russia to gain leverage during talks to end the war more than a military assault. However, Russia has denied any involvement.

Nationalist party Sinn Fein won Ireland’s general elections, beating out the country’s dominant political parties, Fine Gael and Fianna Fail. The results of the election have significantly reshuffled power in Ireland. Now, the challenge is to successfully form a coalition government.

This coming week, the United Kingdom (UK) and European Union (EU) will meet to begin trade talks. The UK has already made public its negotiating stance, calling for a liberalized market without arbitration by the EU court of justice. Furthermore, the UK has announced they will walk away from trade talks if substantial progress is not made by June.

Asia-Pacific

As authorities try to contain the coronavirus epidemic in China, much of China’s economy remains idle. Many factories and businesses have yet to reopen which is causing a liquidity shortage in the country. A survey conducted in February of small and medium-sized Chinese companies shows that a third of respondents only had enough cash in the bank to cover a month’s worth of fixed expenses. Only 30% of these companies have managed to resume business since the start of the outbreak over a month ago.

US President Donald Trump traveled to India this month to meet with Indian Prime Minister Narendra Modi. While there, the two leaders signed a new defense deal in which India will purchase $3.5 billion worth of military equipment from the US. The defense deal was signed despite the fact that trade talks between the two countries have stalled. However, there is hope an agreement can be reached by the end of the year.

Protests over a controversial citizenship law in Dehli, India have become deadly. A week ago, local leaders threatened to violently remove peaceful Muslim protesters. The clashes between authorities and protestors mark Dehli’s worst communal violence seen in decades. The death toll now stands at 42.

The Philippines have terminated a security agreement with the US. For the first time in 69 years, US troops will not be allowed in the country. The Philippines has been an important US ally and strategic outpost in the Pacific for many decades, but Philippine President Duterte feels that the US is interfering too much in domestic affairs.

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