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UK News Factbox - The economic remedies for the coronavirus

12:56  11 march  2020
12:56  11 march  2020 Source:   reuters.com

Take Five: Credit crunch at time of rock-bottom rates?

  Take Five: Credit crunch at time of rock-bottom rates? Take Five: Credit crunch at time of rock-bottom rates?Is it possible we may see a wave of corporate defaults at a time when interest rates are at record lows and falling? In Europe, where many rates are below 0%, signs of stress are emerging as the coronavirus outbreak hits companies' bottom lines. An index of credit default swaps on 75 high-risk European companies compiled by IHS Markit -- the iTraxx Europe Crossover - has surged to the highest in almost four years. The list is pretty diverse: airlines, retailers, carmakers and others all feature.

They agreed the economic impact of the virus was an emergency and an event outside their control. Finance Minister Bill Morneau said he was prepared to act quickly to help companies hurt by the coronavirus and would not need to wait for the next budget, which is usually unveiled in March.

They agreed the economic impact of the virus was an emergency and an event outside their control. In such exceptional cases, EU budget rules, called An additional 10.3 trillion won in treasury bonds will be issued this year to fund the extra budget. Factbox : The economic remedies for the coronavirus .

A quarantine worker in protective gear sprays disinfectants at a screening facility for checking coronavirus disease (COVID-19) in Cheongdo county © Reuters/KIM KYUNG-HOON A quarantine worker in protective gear sprays disinfectants at a screening facility for checking coronavirus disease (COVID-19) in Cheongdo county

(Reuters) - Policymakers have taken a range of approaches to deal with the economic fallout from the coronavirus, from emergency interest rate cuts and big spending packages to a wait-and-see-stance and pledges of action if required.

Here is a list of how some of the world's biggest economies and economic blocs have reacted.

UNITED STATES

President Donald Trump signed a $8.3 billion emergency spending bill to combat the spread of the virus and develop vaccines for the highly contagious disease.

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 Coronavirus: © Supplied by Europe 1 While the coronavirus epidemic is still progressing in France, François- Xavier Bellamy, LR MEP, returns to the microphone of Europe 1 on the measures taken by the authorities to try to stem it. Football matches behind closed doors, but metros always crowded. While the authorities are multiplying measures to try to limit the spread of the coronavirus, certain aspects of the daily life of the French do not budge an inch. "It is a question of slowing down the contamination.

They agreed the economic impact of the virus was an emergency and an event outside their control. In such exceptional cases, EU budget rules, called the French Finance Minister Bruno Le Marie has said that Europe needs to be ready to use fiscal stimulus to deal with the impact of the coronavirus .

Policymakers have taken a range of approaches to deal with the economic fallout from the coronavirus , from emergency interest rate They agreed the economic impact of the virus was an emergency and an event outside their control. In such exceptional cases, EU budget rules, called the

The U.S. Federal Reserve cut interest rates by half a percentage point in its first emergency rate move since the height of the 2008 financial crisis. Investors expect more cuts in the weeks ahead.

CHINA

China said it had earmarked 110.5 billion yuan ($15.9 billion) to fight the epidemic.

Beijing has ramped up funding support for virus-hit regions and the country's central bank has cut several of its key rates, including the benchmark lending rate, and has urged banks to give cheap loans and payment relief to exposed companies.

China will modify the environmental supervision of companies to help the resumption of production disrupted by the coronavirus epidemic, giving firms more time to rectify environmental problems.

JAPAN

Japan unveiled a second package of measures worth about $4 billion in spending to cope with the fallout of the coronavirus outbreak, focusing on support to small and mid-sized firms, as concerns mount about risks to the fragile economy.

Separately, Bank of Japan Governor Haruhiko Kuroda has pledged to pump more liquidity into markets and step up asset buying.

Japan's central bank may also take steps to ensure companies hit by the coronavirus outbreak do not face a financial squeeze before the end of the current fiscal year in March, according to sources familiar with the central bank's thinking.

EUROPEAN CENTRAL BANK

The ECB, the central bank of the euro zone, has so far avoided cutting interest rates. Policymakers did hold an unscheduled meeting on March 3 but it was to discuss operational responses to coronavirus, such as whether to hold events and staff shortages, rather than any policy response, sources close to the matter said.

Coronavirus: Trump speaks of a "medical war"

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They agreed the economic impact of the virus was an emergency and an event outside their control. In such exceptional cases, EU budget rules, called the French Finance Minister Bruno Le Marie has said that Europe needs to be ready to use fiscal stimulus to deal with the impact of the coronavirus .

They agreed the economic impact of the virus was an emergency and an event outside their control. In such exceptional cases, EU budget rules, called the French Finance Minister Bruno Le Marie has said that Europe needs to be ready to use fiscal stimulus to deal with the impact of the coronavirus .

The ECB has asked euro zone banks to review their business continuity plans and the actions they can take to prepare for and minimize the potential adverse effects of the coronavirus, a letter seen by Reuters shows.

THE EUROPEAN UNION

European Union leaders have so far failed to agree radical measures to tackle the crisis. The head of the bloc's executive Ursula von der Leyen said the European Commission will set up a joint investment fund with firepower of 25 billion euros ($28 billion) from existing resources to cushion the blow to vulnerable sectors of the bloc's economies.

GERMANY

Germany's centre-left coalition agreed to increase public investments by 12.4 billion euros by 2024 and to make it easier for companies to claim subsidies to support workers on reduced working hours to counter the effects of the coronavirus epidemic.

Chancellor Angela Merkel's conservatives are split over whether Germany should rush out a fiscal stimulus package to counter any impact of the coronavirus on Europe's largest economy.

Budget experts estimate the government has the fiscal room for additional measures worth at least 17 billion euros ($18.9 billion). Some officials say that Berlin could even put together a stimulus package worth up to 50 billion euros, without ditching the government's policy of no new debt.

Factbox: The projection that changed Britain's coronavirus policy

  Factbox: The projection that changed Britain's coronavirus policy Factbox: The projection that changed Britain's coronavirus policyLONDON (Reuters) - British Prime Minister Boris Johnson unveiled much more stringent measures to tackle the coronavirus outbreak after new research indicated a quarter of a million people would have died under previous plans to control the spread of pandemic.

They agreed the economic impact of the virus was an emergency and an event outside their control. In such exceptional cases, EU budget rules, called the Finance Minister Bill Morneau said he was prepared to act quickly to help companies hurt by the coronavirus and would not need to wait for the

The number of people infected with the coronavirus topped 114,000 across the world as the outbreak spread to more countries, causing greater economic damage. - President Xi Jinping visited Wuhan, where all temporary coronavirus hospitals have now been closed, on Tuesday for the first time since

BRITAIN

The Bank of England cut interest rates by half a percentage point and offered banks cheaper funding and a reduction in capital buffers in an emergency move to bolster Britain's economy against disruption caused by the coronavirus outbreak.

Finance Minister Rishi Sunak is expected to announce measures to offset the expected hit to Britain's economy from the spread of coronavirus in his budget on March 11.

FRANCE

French Finance Minister Bruno Le Marie has said that Europe needs to be ready to use fiscal stimulus to deal with the impact of the coronavirus.

The government is allowing companies to suspend payments of some social charges and taxes, and is activating state-subsidised short-time work schemes. It has ordered the Bpifrance state investment bank to guarantee loans needed to overcome short-term cashflow problems.

Paris has also allowed companies to declare force majeure due to the outbreak if they cannot honour a contract with the public sector, and is putting pressure on big companies to show similar leniency with subcontractors.

INDIA

The Reserve Bank of India (RBI) plans to infuse fresh cash liquidity into the system through a second round of long-term repo operations (LTRO), government officials told Reuters, amid fears that the coronavirus outbreak will derail any revival of economic growth. One official said the RBI might inject as much as 1 trillion rupees ($13.6 billion) in the round that will begin as early as April.

Coronavirus in Toulouse: Deserted hotels, canceled events ... A sector "in immediate danger of death"

 Coronavirus in Toulouse: Deserted hotels, canceled events ... A sector Trade fairs, concerts, receptions ... the cascading cancellations caused by the coronavirus epidemic hit the event sector hard. In Toulouse, 200 professionals consider themselves "in danger of death" and ask for immediate measures © Screenshot d'ecran - Cocu Like many other events, the Toulouse Carnival did not resist the Coronavirus. ALARM - Trade shows, concerts, receptions ... the cascading cancellations caused by the coronavirus epidemic are hitting the event sector hard.

The RBI has said it stands ready to act to maintain market confidence and preserve financial stability.

The government is, meanwhile, pushing state-run banks to approve new loans amounting to 500-600 billion rupees by the end of March, according to government sources.

ITALY

Italy has doubled the amount it plans to spend on tackling its coronavirus outbreak to 7.5 billion euros ($8.4 billion) and is raising this year's deficit goal to 2.5% of national output from the current 2.2% target.

Payments on mortgages will be suspended across the whole of Italy and Italy's banking lobby ABI said lenders would offer debt moratoriums to small firms and households grappling with the economic fallout from the virus.

CANADA

Finance Minister Bill Morneau said on March 9 that the government was "looking at taking some initiatives this week," as Canada reported its first coronavirus death, with a steep decline in oil prices expected to hit the world's fourth-largest crude producer hard.

The Bank of Canada lowered its benchmark overnight rate to 1.25% from 1.75% in response to the epidemic, prompting money markets to price in a better-than-even chance of another reduction next month. The last time it cut by 50 basis points was in 2009 during the financial crisis.

SOUTH KOREA

The government announced a stimulus package of 11.7 trillion won ($9.8 billion) to cushion the impact of the largest outbreak of coronavirus outside China.

Finance Minister Hong Nam-ki said the supplementary budget, subject to parliamentary approval, would channel money to the health system, childcare, and outdoor markets. An additional 10.3 trillion won in treasury bonds will be issued this year to fund the extra budget.

Seoul has also dramatically tightened rules on short-selling for three months. Starting March 11, stocks with a sudden and abnormal increase in short-selling transactions will be suspended from further short-selling for 10 days.

(Reporting by Reuters Staff; editing by Dan Burns and Edward Tobin)

Coronavirus: The death toll in Italy climbs to 197 dead and 4,636 contaminations .
HEALTH-CORONAVIRUS-ITALY: Coronavirus: The death toll in Italy climbs to 197 deaths and 4,636 contaminations © Reuters / MASSIMO PINCA CORONAVIRUS: THE BALANCE SHEET IN ITALY RISES TO 197 DEAD AND 4,636 CONTAMINATIONS ROME (Reuters) - The death toll of the coronavirus epidemic in Italy has risen to 197 dead, 49 more than the previous day, the Civil Protection Agency announced on Friday, the largest daily increase since the onset of the disease in the country two weeks earlier.

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