Reuters Insider - Reuters Today: ECB set to give virus-stricken euro zone a new shot in the arm

China Smarter Energy group

04/06/2020 09:35

Click the following link to watch video: https://share.insider.thomsonreuters.com/link?entryId=1_rw2jnvrf&referenceId=1_rw2jnvrf&pageId=ReutersNews
Source: Reuters Insider

Description: The European Central Bank is certain to give the ailing euro zone
economy another boost.
The only question is the timing, with arguments split
between a move on Thursday and holding out until July.
Short Link: https://refini.tv/3ePgS7y

Video Transcript:

The European Central Bank is almost certain to give the ailing Eurozone
economy another shot in the arm today. For economists, the only question is
timing with arguments split between today and holding out until July. The
region’s economy shrank at a record rate in Q1 and could deteriorate
further in Q2. Europe’s equity market struggled to make much headway
after three days of gains. Attention is firmly fixed on that ECB meeting with
a broker at Jefferies writing that there is no reason to delay another boost
which would confirm the EU’s commitment to stay active in the market. Oil
prices fell on worries about whether major producers will agree to extend
their output cuts at an OPEC meeting that is expected to take place later
today. Rising US stockpiles also added to concerns about the market. A Reuters
polls suggest Sterling will take a pasting if the UK does not ask for an
extension to the Brexit transition period. The currency has strengthened this
week as Britain indicating it might be prepared to make some compromises over
a trade deal. Even so, the Pound is still weighed down by many factors
including Brexit-related risks and speculation about negative rates. On a
trade-weighted basis, Sterling has seen a dramatic fall since the UK voted to
leave the EU in 2016. The number of COVID-19 deaths in the UK has now
surpassed 50,000 according to the latest Reuters tally. It puts the UK second
in the world in the number of deaths behind the United States. The figure also
heap pressure on Boris Johnson’s government which opposition leaders say
was too slow in ordering a lockdown of the economy and its citizens.
Meanwhile, Britain’s Interior Minister Priti Patel has outlined new
quarantine measures for people traveling to the country. All international
arrivals including returning Britons have to self-isolate for 14 days and
provide details of where they will be staying under the plans. The move has
been criticized by airlines, business groups, and politicians alike. 

The transmission rate in the United Kingdom continues to decline and
international travel is likely to resume from its record low. Therefore, the
scientific advice is that imported cases of the virus pose a more significant
threat to our national effort and our recovery. Travelers from overseas could
become a high proportion of the overall number of infections in the UK and
therefore increase the spread of the disease.

Germany, however, plans to lift the travel ban for EU member states, as well
as the UK, and Schengen members. But Foreign Minister Heiko Maas warn that if
there’s a spike in cases, travel bans could be reimposed, and he urged
the Germans not to travel to the UK unless it is absolutely necessary.

Travel warnings are not travel bans and travel advisories are not travel
invitations. This what we want to make clear in the travel advisories which
contain all the information we strongly advise against a certain trip such as
to Great Britain as long as there’s a 14-day mandatory quarantine for all
people arriving there. 

Let’s take a look at some companies in the news now and EasyJet has lost
its place in the FTSE 100 Index. The value of its stock has dropped by around
45% because of the coronavirus. Cruise operator Carnival also fell out of the
index, as has energy supply Centrica, and engineering firm Meggitt. The drinks
firm Rémy Cointreau sees profits falling by as much as 50% during the first
half of the year. However, it does see a strong recovery in the second half.
The prediction comes as profits in the first three months of the year fell 22%
reflecting weaker sales and higher costs. HSBC and Standard Chartered have
broken from their long-standing policy of political neutrality and come out in
support of China’s new security law for Hong Kong. Some staff say their
stance on the law could help them protect their businesses in their most
important market