J.P. Marín Arrese | The EU strategy for curbing the crisis stalled on Wednesday’s early hours as Holland and Italy bitterly clashed over the scope and conditions of the plans to support ailing partners. Minister Gualtieri rejected anything short of mutually guaranteed bond emissions. His Dutch counterpart flatly refused to envisage such a way out while insisting on demanding structural reforms from any beneficiary of the rescue fund. This row rests on wholly misleading assumptions.Read More
Carsten Menke (Julius Baer) | According to news over the weekend, the full closure of some of the world’s largest gold refineries in Switzerland is about to end after two weeks. The refineries are located in the southern-most canton of Ticino, which, due to its proximity to Italy and a big number of cross-border commuters, is most strongly affected by the coronavirus. Starting on Monday, operations are resuming, but at less than half of capacity.
After 16 hours of telematic meetings, the Eurogroup came close to reaching an agreement, but once again, that did not happen. Once again, it is postponing the decision until tomorrow, Thursday. Once again, it has failed. The Eurozone finance and economy ministers remain divided over the debt mechanism which will help the countries most affected by the pandemic to finance themselves. This division between North and South has a very clear figure: 500 billion euros are up in the air.
Keith Wade (Schroeders) | The world economy is in the midst of a sudden stop where activity has been brought to a halt by official action to suppress the coronavirus. We have updated our forecasts and see a severe recession in global GDP this year with the downturn concentrated in the second quarter (see here). Although a rapid V-shaped recovery is our central forecast, if Covid-19 lingers there is a risk of a “double-dip” recession.Read More
Coronavirus Shatters Spain’s All-Time Unemployment Rise Record: 302,365 People Lost Their Jobs in March
In the face of the economic slowdown due to the restrictive measures in place to stop the spread of Covid-19, Spanish companies laid off or terminated contracts for over 302,365 workers in March, which is more than 50% higher than the negative milestone of January 2009 (at the start of the last economic crisis) when there were almost 199,000 unemployed.This brought the total number of unemployed to 3.548.312. Finally, Spain’s labour market have lost 833,979 members up to March 31.Read More