Coronavirus: global recession fears intensify as Trump's Europe ban fails to reassure - MW

A strong effort by Donald Trump to limit the spread of coronavirus by banning travel to the US from most of Europe for 30 days did not cause heavy losses in financial markets and made an economist Leading warning that the current global economic downturn is likely to occur Odor.

In a gloomy primitive address from the Oval Office on Wednesday night, the US president boasted that the travel ban and a host of other measures designed to stamp out the economic blow had caused an attempt. The most active and comprehensive to deal with foreign viruses. history".

But Asian stock markets and futures on Wall Street have sunk deep into the red even when Trump made his plans, with investors betting that the $ 250 billion package won't be enough to reversing the closure of the world's largest economy.

The U.S. suspension will not apply to Great Britain and Ireland, and not to US citizens, Mr. Trump said, when he tried to blame the European Union for hotspots on seeds in America. The confusion after Trump said the address later forced officials to make it clear that goods, like non-Schengen countries in Europe, would also be exempt from the ban.

Observers said the speech, in which Trump raised consciousness against a foreign invasion, caused a strange tone. David Litt, who wrote the speech for Barack Obama, said: Manh Being a former playwright of the president, my careful rhetoric analysis is that he will cause us all to be killed.

Elsewhere, Italy has seen its restrictions on daily life increase after the government ordered the closure of all stores other than pharmacies and grocery stores and other essential stores. . The entire nation of 60 million people was locked out on Tuesday and is the second most affected country with more than 12,000 cases.

The outbreak also claimed its most advanced cases so far when Hollywood superstar Tom Hanks declared that he and his wife, Rita Wilson, tested positive for coronavirus. The couple are in Australia, where the 63-year-old actor is making a film about Elvis by director Baz Luhrmann.

An unidentified UK cabinet minister also volunteered the results while awaiting test results after meeting with infected health minister Nadine Dears.

In other developments, the NBA basketball tournament was suspended indefinitely after a positive test by a Utah Jazz player, and New York and Chicago canceled their St Patrick's Day parade next week, The first time it happened in more than 250 years.

The global infection has now increased to over 126,000 and there have been 4,600 deaths due to what the World Health Organization has now officially declared as a pandemic. China still accounts for the majority of victims, but official data on Thursday said there were only 15 new infections in the past 24 hours.

The number of lawsuits in the U.S. has risen to more than 1,300, with a sharp increase in recent days, one of the factors forcing Trump to respond more aggressively to the outbreak after repeatedly trying to lower the threat. .

But he still tried to deflect the blame, calling it a foreign virus called a foreign virus and saying that there were fewer cases of the disease in the US than in Europe.

The European Union has not taken similar precautions and restricted travel from China and other hot spots. As a result, a large number of new clusters in the United States have been sown by visitors from Europe, he said. After consulting with leading government health experts, I decided to take some strong but necessary actions to protect the health and welfare of all Americans.

The US Department of State subsequently issued revised guidelines recommending Americans to reconsider all foreign travel.

U.S. economic measures disclosed by Trump include financial relief for workers who are ill, quarantined or cared for others due to illness, Trump said, adding that the U.S. Treasury will postpone payment. Taxes without interest or penalties for some businesses and individuals. The financial system will be supported by an additional $ 200 billion of liquidity, he said, and small businesses will be granted access to more capital and liquidity.

But Mohamed El-Erian, the highly respected chief economist of Allianz Insurance, said those measures would not be enough to stop the closure of economies around the world, which are currently being held back. braked by Nott's frightened economy.

Today's advanced economies have the ability to feel the entire force of an economic stop suddenly destroying both supply and demand at the same time, he said. The collapse in the risk of economic activity is amplified by the economics of fear, uncertainty and adverse economic-financial feedback rounds.

I believe that there is a high possibility of a global economic recession.

Tom Hanks, revealing that he was infected is also considered an important factor, due to the spread of infectious diseases to such a famous person.

El-Erian said the news of Tom Hanks would cause uncertainty, making people more relaxed from economic activities.

His gloomy analysis has been reflected in financial markets in Asia Pacific, which plunged into full-selling mode during and after Trump said the address. ASX200 in Sydney has fallen by 7.2%, in Tokyo, Nikkei by 5.4% and Hong Kong by 4.3%.

Airlines' stocks are especially heavily affected. Australia Qantas dropped 11%, Singapore Airlines decreased 4%, as well as Hong Kong crude oil of Cathay Pacific Brent, the international standard, badly affected by the new travel ban, down 5.3% to 33.88 dollars.

Price action indicated selling more in Europe and the US when the market opened on Thursday. The Dow Jones industrial average entered the bear market territory on Wednesday - determined by a 20% decline from its most recent high - and futures trading showed it would take another 4, 4% on Thursday. FTSE100 is set to fall 5.8% in London.

Khoon Goh, head of Asia research at ANZ in Singapore, said. We know that the economic impact is very significant and with this additional measure, it will double the impact of businesses. This is something that the markets have not included in ... it has a huge short-term economic cost.

MW