•   
  •   

UK News Virus outbreak hits weakened Italian economy where it hurts

09:40  07 march  2020
09:40  07 march  2020 Source:   msn.com

Coronavirus: what is the plan for a UK outbreak?

  Coronavirus: what is the plan for a UK outbreak? Schools may be closed and travel restrictions imposed nationwideSwitzerland, Austria, Croatia and mainland Spain have all recorded their first cases, while the death toll from the Covid-19 disease has risen to 11 in Italy.

Italy Virus Outbreak Economy . FILE - In this Friday, Feb. 28, 2020 file photo, two waiters wait for customers in a restaurant at St. Mark's Square Europe’s third-largest economy has long been among the slowest growing in the region and is the one that is tallying the largest number of virus infections

Virus outbreak hits weakened Italian economy where it hurts . Associated Press. Ukrainian Leader Backs Calamitous Reshuffle to Deliver Results. Why the US economy is particularly sensitive to the coronavirus outbreak . Yahoo Finance. What to watch in the markets: Week of Mar 9.

FILE - In this Friday, Feb. 28, 2020 file photo, two waiters wait for customers in a restaurant at St. Mark's Square in Venice, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (Claudio Furlan/Lapresse via AP, File) © Provided by Associated Press FILE - In this Friday, Feb. 28, 2020 file photo, two waiters wait for customers in a restaurant at St. Mark's Square in Venice, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (Claudio Furlan/Lapresse via AP, File)

MILAN (AP) — The focal point of the coronavirus emergency in Europe, Italy, is also the region's weakest economy and is taking an almighty hit as foreigners stop visiting its cultural treasures or buying its prized artisanal products, from fashion to food to design.

Coronavirus live news: first cases in Wales and Northern Ireland bring UK total to 19 as Boris Johnson calls Cobra meeting

  Coronavirus live news: first cases in Wales and Northern Ireland bring UK total to 19 as Boris Johnson calls Cobra meeting Here's the latest news on the virus, including new cases, treatments and global responses to the outbreakThe virus, officially termed Covid-19, initially broke out in Wuhan, China, with officials notifying the public of the first outbreaks on New Year's Eve, 2019.

A coronavirus outbreak in China which has killed 81 people and spread to many countries is expected to hurt its economy , an engine of global growth Wuhan, a city of 11 million and the epicenter of the virus outbreak in central China, is already in virtual lockdown and severe limits on movement are in

Italy 's growth is already estimated at just 0.1% for 2019 - the lowest in the eurozone. The talk now is that the impact of the virus could tip it into recession. Italy itself was the first European country to halt flights to and from China when the outbreak began: a risk for an economy that depends on some five

Europe’s third-largest economy has long been among the slowest growing in the region and is the one that is tallying the largest number of virus infections outside Asia.

Entire towns are quarantined in the north, the heart of Italy's manufacturing and financial industries. Airlines have cut back on flights to the country, meaning millions fewer travelers are expected - causing billions in losses for hotels, restaurants, tourist sites and many others.

FILE - In this Friday, Feb. 28, 2020 file photo, two waiters wait for customers in a restaurant at St. Mark's Square in Venice, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (Claudio Furlan/Lapresse via AP, File) © Provided by Associated Press FILE - In this Friday, Feb. 28, 2020 file photo, two waiters wait for customers in a restaurant at St. Mark's Square in Venice, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (Claudio Furlan/Lapresse via AP, File)

The turmoil is expected to push Italy back into recession and weigh more broadly on the European economy, with trade-focused countries like Germany, France and Britain also struggling with the global disruption to supply chains and travel.

What is the coronavirus Delay Phase? The four phases the government is using to combat coronavirus - and when it will peak

  What is the coronavirus Delay Phase? The four phases the government is using to combat coronavirus - and when it will peak With coronavirus continuing to spread across the UK, and the globe, the UK government is looking at moving onto the next phase in its action plan. © Provided by The Scotsman This is everything you need to know about the Delay Phase, what action to expect from the UK government and when the virus might peak. What is the Delay Phase? The Delay Phase is part of a four-step plan from the government to tackle the outbreak of Covid-19, which is spreading rapidly throughout the UK.

The 2019–20 coronavirus outbreak is an ongoing global outbreak of coronavirus disease 2019 that has been declared a Public Health Emergency of International Concern.

Flybe’s fall highlights the damage that the virus outbreak has had on the airline industry, which has cut back on flights around the world as people avoid The weaker pound hurts airlines like Flybe that have significant costs in dollars but take in revenue in pounds. The airline also was struggling to pay

"I am getting cancellations through June,'' said Stefania Stea, who has two hotels in Venice, where the Carnival cancellation emptied the city in a single afternoon and sent occupation rates plunging to an unheard of 1%-2%

FILE - In this Friday, Feb. 28, 2020 file photo, a waiter waits for customer as locals eat a meal in a restaurant at St. Mark's Square in Venice, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (AP Photo/Francisco Seco, File) © Provided by Associated Press FILE - In this Friday, Feb. 28, 2020 file photo, a waiter waits for customer as locals eat a meal in a restaurant at St. Mark's Square in Venice, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (AP Photo/Francisco Seco, File)

Stea, who is vice president of the Venice hoteliers association, is tallying cancellations worth 7,000-10,000 euros ($7,700-$11,000) a day for her 39 rooms — all currently empty.

Coronavirus wipes out British business confidence bounce - IoD survey

  Coronavirus wipes out British business confidence bounce - IoD survey Coronavirus wipes out British business confidence bounce - IoD surveyLONDON (Reuters) - The coronavirus outbreak has reversed a recent upturn in British business leaders' optimism, with confidence now at a six-month low, a survey by the Institute of Directors showed on Monday.

The outbreak appears to be easing in China, where it first emerged late last year in an market illegally trading wildlife. Mainland China reported 327 new REUTERS/Stringer CHINA OUT . But the virus is surging elsewhere. Countries other than China now account for about three-quarters of new infections.

Singapore said on Monday that the coronavirus outbreak will hurt its economy this year, as it announced new measures to tackle the disease which originated in China and has spread to the city-state and several other countries.

“The only reservations I am getting are for Christmas or New Year's Eve, with people hoping for a deal.”

Italy's economy is forecast to shrink this quarter, with Bocconi university economist Francesco Daveri predicting a 0.3%. That would match a surprise shrinkage in the last quarter of 2019 and would put the country in a technical recession.

The country has already shed 4% of GDP in back-to-back recessions in the first two decades of the century, and recovery has been stalled for the last two years.

FILE - In this Friday, Feb. 28, 2020 file photo, gondoliers wait for customers in Venice, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (AP Photo/Francisco Seco, File) © Provided by Associated Press FILE - In this Friday, Feb. 28, 2020 file photo, gondoliers wait for customers in Venice, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (AP Photo/Francisco Seco, File)

Banks are still trying to burn off a pile of bad loans left over from the financial crisis a decade ago and the government's public debt load - the highest in Europe after Greece - limits the country's ability to significantly ramp up spending to help the economy if needed.

UK banks RBS, Lloyds offer help to coronavirus-hit customers

  UK banks RBS, Lloyds offer help to coronavirus-hit customers UK banks RBS, Lloyds offer help to coronavirus-hit customersState-backed RBS said on Tuesday that affected borrowers would be able to defer mortgage and loan repayments by up to three months, as part of its policy of supporting customers who suffer financial hardship from unexpected events.

FILE - In this Monday, March 2, 2020 file photo, a shop assistant waits for customers at the Murano island in Venice, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (AP Photo/Francisco Seco, File) © Provided by Associated Press FILE - In this Monday, March 2, 2020 file photo, a shop assistant waits for customers at the Murano island in Venice, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (AP Photo/Francisco Seco, File)

The tourism and luxury industries were the first, but not last, to sound the alarm.

Tourism officials are projecting 32 million fewer foreign visitors and a loss of 7.4 billion euros ($8.1 billion) in the second quarter alone, before the arrival of the make-or-break summer travel season. Foreign airlines are canceling flights to Milan, Italy’s financial and fashion capital, and to Venice, a top destination.

In this photo taken on Thursday, March 5, 2020, two shop assistants wait for customers at a fashion store in Monte Napoleone shopping street in Milan, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (AP Photo/Antonio Calanni) © Provided by Associated Press In this photo taken on Thursday, March 5, 2020, two shop assistants wait for customers at a fashion store in Monte Napoleone shopping street in Milan, Italy. With the coronavirus emergency deepening in Europe, Italy, a focal point in the contagion, risks falling back into recession as foreign tourists are spooked from visiting its cultural treasures and the global market shrinks for prized artisanal products, from fashion to design. (AP Photo/Antonio Calanni)

The tourism industry decries what it describes as confusing and hyperbolic media coverage of the virus outbreak, creating more concern among Italians, travelers and business partners than perhaps warranted.

South Lanarkshire councillors hold closed doors meeting to discuss coronavirus outbreak

  South Lanarkshire councillors hold closed doors meeting to discuss coronavirus outbreak It is understood the talks included the latest available information on the outbreak and the organisational response to the outbreak in South Lanarkshire.South Lanarkshire councillors were given a private briefing on the situation after a meeting of the council’s social work committee on Wednesday, March 4.

"Unfortunately, we are paying the price of a media communication that has been much more lethal than the virus,’’ said Luca Patane, the president of tourism association Confturismo-Confcommercio.

Even before the virus arrived in Italy, luxury fashion officials projected a 2% first-half contraction. That was based solely on weaker spending by Chinese consumers, who are the biggest luxury buyers in the world accounting for 35% of global sales.

Now the virus, which began in China, is discouraging well-heeled shopping tourists to Milan’s MonteNapoleone district and Rome’s via Condotti, while spreading to the U.S. and European neighbors, key export markets.

"It is starting to impact Japan and Korea, and most probably will impact Europe and other countries as the virus spreads. We hope it will not spread too fast,’’ said Federica Levato, partner at consultancy group Bain.

Bain is, for now, maintaining its forecast for 3%-5% year-on-year growth in global luxury goods sales through 2025. Levato noted that in the 2003 SARS epidemic, spending rebounded "as soon as the crisis passed.’’

How deeply the virus will hit the rest of the Italian economy remains to be seen.

Authorities are trying to help with a 7.5 billion-euro ($8.3 billion) plan approved this week, including short-term unemployment schemes to help small businesses. The European Central Bank could trim its interest rates when it meets next week, but they are already near or below zero, and the disruption to business is unlikely to be helped much by cheaper credit.

Coronavirus budget: Sick pay to be refunded by government for small businesses

  Coronavirus budget: Sick pay to be refunded by government for small businesses Chancellor Rishi Sunak has told Britons fearful of the impact of the global coronavirus outbreak: "We will get through this together."As he unveiled his budget to MPs in the House of Commons, Mr Sunak - who has only been in the job for 27 days - stressed the government is "doing everything we can" to keep people healthy and financially secure.

Making things more complicated is a lack of knowledge about the virus's true risks and whether it is spread, for example, through exported goods.

Industry groups and policymakers have signaled incidents of importers of Italian goods in other EU countries seeking additional certification that the goods are virus-free.

The Coldiretti agricultural lobby on Wednesday said that “unjustified documentation” had been requested from importers of aged cheese in Greece, lettuce sent to Poland and fruit to Kuwait, while shipments of Italian-grown apples are blocked at the border with Ukraine.

Coldiretti also said its producers had reported "numerous cancellations without good reasons that struck an entire range of ‘Made in Italy’ foodstuffs, from wine to cured meats.’’

The coronavirus emergency is damaging Italy’s image abroad, Coldiretti said, putting at risk a sector worth 538 billion euros ($590 billion), from farm producers to grocery shelves to restaurants.

In a bid to limit damage, agricultural association Confagricoltura met this week with government officials from countries including Britain, France, Germany, Hungary and the Netherlands.

And it is not only food products that have fallen under suspicion. The head of a steel making company said a customer in Germany had requested that wooden shipping containers be sanitized.

The apparently ad-hoc requests are out of line with prevailing medical advice.

The World Health Organization has emphasized that the virus is spreading person to person “and nothing indicates that other routes of transmission, such as via parcel or cargo freight, are contributing to onward spread in any way.” It added that there is no evidence to suggest food products pose a risk.

Foreign Minister Luigi Di Maio this week protested against what he called indiscriminate limits on Italian exports.

“It is not acceptable to block Italian goods or ask for a certificate of guarantee beyond what exists in commercial agreements,’’ Di Maio said Tuesday. ”Merchandise does not have anything to do with the virus.’’

___

The Associated Press receives support for health and science coverage from the Howard Hughes Medical Institute’s Department of Science Education. The AP is solely responsible for all content.

___

Follow AP coverage of the virus outbreak at https://apnews.com/VirusOutbreak and https://apnews.com/UnderstandingtheOutbreak

historian on the corona virus: "Economic damage greater than that of Spanish flu" .
1 © dpa coronavirus historian Eckard Michels explains what we can learn from the Spanish flu of 1918 for dealing with the corona virus - and why SARS-CoV-2 does Harms the economy more, even though it is medically harmless. Eckard Michels, 57, is a modern historian and teaches at Birkbeck College, University of London. WirtschaftsWoche: Professor Michels, as a historian you have dealt intensively with the Spanish flu of 1918, which is probably the largest modern pandemic.

—   Share news in the SOC. Networks
usr: 0
This is interesting!