As a“bad awakening”, the Bank for International Settlements (BIS) classifies the sharp price drops on the stock exchanges in response to the spread of the coronavirus. The uncertainty determines the development, said Claudio Borio, chief economist of the BIS, which is considered the bank of central banks, on the occasion of the presentation of the current quarterly report on Sunday. In his view, the financial markets will focus on the news about the virus and the measures taken by the authorities in the coming weeks.

Fed President Jerome Powell announced his willingness to act on Friday evening. The Fed is closely monitoring developments and their effects on the future economic situation. “We will use our tools and act appropriately to support the economy,” said Powell. In Germany, Finance Minister Olaf Scholz (SPD) has agreed to an economic stimulus program if there are serious upheavals in the global economy.

In Italy, the government announced on Sunday an aid package for the economy hit by the coronavirus outbreak of EUR 3.6 billion. This should be approved by Parliament this week, Economics Minister Roberto Gualtieri told La Repubblica.

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Amanda Graham
News staff at The Eastern Herald. Writing and publishing news on the economy, politics, business, and current affairs from around the world.