The International Monetary Fund said on Tuesday its board approved a new, three-year framework for bilateral borrowing agreements, ensuring that its full $1 trillion lending capacity will be maintained as member countries battle pressures from the coronavirus outbreak. The new framework is broadly the same as that enacted in 2016 for agreements that allow wealthier IMF member countries to lend directly to countries in need, the IMF said.
It’s also essential for employers to support all staff in other family types, including those without kids.
Big U.S. tech firms such as Google and Facebook plan to seek deferment of a new Indian digital tax, which has caught them off-guard as businesses battle the fallout from the coronavirus pandemic, three industry sources told Reuters. India announced last week that, from Apr. 1, all foreign billings for digital services provided in the country would attract a 2% tax. Foreign billings are where companies take payment abroad for a service provided to customers in India.
China will make further targeted cuts in the reserve requirement ratio (RRR) for medium- and small-sized banks to help cushion the impact of the global coronavirus outbreak, state media reported on Tuesday, quoting a cabinet meeting chaired by Premier Li Keqiang. "We need to strengthen the adjustment of fiscal and monetary policies in the face of new challenges from the domestic and international epidemic situation and rapid changes in the world economic and trade situation," the cabinet was quoted as saying. China will increase re-lending and re-discount quotas for medium and small banks by 1 trillion yuan ($140.85 billion) and will issue more local government special bonds, it said.
Mar.31 -- The ECB expects lenders to fall in line with its recommendation to delay dividend payments until October. But if banks don't comply, ECB Supervisory Board Chairman Andrea Enria says the central bank could take legally binding steps to force lenders to do so. He spoke to BTV's Matt Miller and Anna Edwards on European Market Open.
Around 470,000 companies in Germany have applied for a government short-time work scheme in March due to coronavirus, the Federal Labour Office said on Tuesday, adding requests had come from many sectors, especially retail, hotels and catering. It has been widely used by industry, including Germany's car sector. "That means millions of employees will be able to keep their jobs," Labour Minister Hubertus Heil told a news conference.
In a letter seen by Reuters, transport ministers of Bulgaria, Hungary, Lithuania, Poland, Cyprus, Latvia, Malta and Romania said the bloc should stand up for transport firms as it has already taken steps to help struggling airlines. "Instead, we are on track of adopting the first Mobility Package whose provisions, combined with the aftermath of the coronavirus outbreak, will literally bring many European road transport businesses to an end," said the letter to the heads of the three main EU institutions.
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Mar.31 -- Two of the biggest drillers in America’s largest oil-producing state have asked Texas regulators to consider a cut to crude output after a historic price crash. Pioneer Natural Resources CEO Scott Sheffield explains why to Alix Steel on "Bloomberg Daybreak: Americas."
China has not approved any new Brazilian meat plants for export this year because of the coronavirus pandemic, an official at Brazil's Agriculture Ministry told Reuters, adding that all approvals were on hold until the crisis eases. The freeze comes despite the fact that Brazil and China implemented a new system in January intended to speed up approvals, said Orlando Leite Ribeiro, international affairs secretary at Brazil's Agriculture Ministry.
Europe is likely to see the default rate by 'junk'-rated firms almost quadruple to 8% over the next 12-months, credit rating agency S&P Global said on Tuesday. S&P warned last week that Europe was set for at least a 2% recession this year, but possibly as deep as 10% if the current coronavirus lockdowns lasted four months. The ratings agency said the oil and gas sector is likely to be "particularly hard hit" due to rout in crude prices.
Russian President Vladimir Putin and his U.S. counterpart Donald Trump agreed during a phone call on Monday that the current situation on world oil markets suited neither, the Kremlin said on Tuesday. Trump and Putin agreed during their call to have their top energy officials discuss slumping global oil markets, the Kremlin said on Monday, as Trump called Russia's price war with Saudi Arabia "crazy." On Tuesday, the Kremlin said the two men had agreed to have further consultations on oil markets, but had not fixed a date for more talks.
Global fund managers are convinced the world economy is already in recession, and recommended increasing bond holdings in March to the highest level in at least seven years while buffering up on cash at the expense of equities, a Reuters poll showed. The damage the coronavirus pandemic and oil price collapse have inflicted on global financial markets has been the fastest selloff since the crash of 1929 that led to the Great Depression. "For once in many years, the reality of the underlying economic conditions and financial markets' moves seem to coincide despite policy first-aid, which previously had made the pain go away instantly," said a global chief investment officer at a large fund management company.
Hungarian businessman Miklos Vaszily, the chairman of pro-government TV2, said on Tuesday he has bought a 50% stake in Indamedia, a holding company which controls the advertising revenue channels for independent news site Index.hu. Index is the largest news portal in Hungary critical of Prime Minister Viktor Orban after a major shake-up of Hungary's media sector in recent years left most major outlets under the control of the government or pro-government business leaders.
The boss of British digital bank Monzo has volunteered to forego his salary for a year, while other senior staff will take a 25% pay cut, as part of measures the lender is taking in response to the coronavirus hit on the economy. Co-founder and CEO Tom Blomfield told the bank's 1,500 staff that he would not be taking a salary for twelve months, a source familiar with the contents of the memo said. Other members of the senior management team, the board and some other staff have volunteered to take a quarter cut in pay, the source said.
Labour has called on the government to close non-essential workplaces such as call centres and factories amid concerns staff are being put at risk of coronavirus in unsafe working environments.In a letter to Boris Johnson, shadow employment minister Rachael Maskell said many people were continuing to work without protective equipment and adequate hand washing facilities, despite the warning from the government that non-essential workers should stay at home during the coronavirus crisis.
A new mechanism to enable the issuance of joint euro zone debt to counter economic fallout from the coronavirus epidemic, as recommended by nine European leaders, could take up to three years to set up, the head of the bloc's bailout fund said. France, Italy, Spain and six other countries called last week for work on a common debt instrument issued by a European institution to cushion the effects of the pandemic, which is on course to trigger a global recession. EU leaders gave the bloc's finance ministers until April 9 to come up with ideas on how to further support the economy after the bloc relaxed state aid rules and debt limits to let countries spend to prop up their economies.
Experian, Equifax and TransUnion said that consumer credit scores will be protected in cases where lenders have agreed to pause loan repayments.
The Bank of Spain said on Tuesday it would not activate counter-cyclical buffers for domestic lenders for the foreseeable future due to the economic fallout from the coronavirus pandemic, and it maintained the buffer at 0% for the coming quarter. The buffers seek to mitigate or prevent cyclical risks caused by excessive growth in aggregate credit by requiring lenders to build insurance reserves during times of strong growth which would then be available in the case of a downturn. Last October, the central bank said it could start activating the counter-cyclical buffers from the second quarter of 2021 onwards, but Tuesday's statement marked a change of tack.
The supermarket chain said it plans to increase its delivery and collection capacity by another 100,000 slots in the coming weeks.
British energy suppliers have asked the government to provide support so they can offer payment breaks to households and businesses struggling to pay bills because of the impact of the coronavirus. Many large British energy suppliers have already seen profits shrink since energy regulator Ofgem last January placed a cap on the most widely used tariffs. The government has ordered sweeping measures to slow the spread of the virus, shutting down much of the economy and raising the prospect of mass job losses.
Air France-KLM said on March 16 it would park its biggest airliners and slash services by up to 90%. Air New Zealand said on March 16 it would cut long-haul capacity by 85% in the coming months and the domestic network by 30% in April and May. The airline has withdrawn its full-year outlook, frozen hiring and offered unpaid leave to staff.
Retail landlords NewRiver and Capital & Regional on Tuesday showed they were benefiting from their focus on “essential” shops such as chemists and grocers that remain open under the Covid-19 lockdown.The pair lease less space than some rivals to chains in sectors such as fashion which have proved vulnerable to weak consumer confidence. Instead they host more opticians, supermarkets and other vital suppliers to communities.