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We’ve already had subtler forms of helicopter money but this is the first blatant cash hand-out to citizens that I know of. I’m sure we’ll see more, as the situation deteriorates:

Hong Kong is handing most of its residents a pile of cash to spend as it tries to save its slumping economy from the aftermath of protests and the coronavirus outbreak.

“The Asian financial hub said Wednesday that the measure… will involve giving 10,000 Hong Kong dollars (about $1,280) to all permanent residents in the city who are at least 18. About seven million people will benefit from that program.”

https://www.msn.com/en-us/money/markets/hong-kong-is-giving-7-million-people-dollar1200-in-cash-to-boost-its-recession-hit-economy/ar-BB10pms1?li=BBnbfcN


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China has announced a flurry of steps in recent weeks to shore up investor confidence and help keep smaller businesses afloat as the coronavirus epidemic severely disrupts economic activity.

“Many analysts believe more support measures are likely soon as disruptions look set to extend well into the second quarter.”

https://www.reuters.com/article/us-china-health-lending/chinas-central-bank-to-ensure-ample-liquidity-through-targeted-rrr-cuts-idUSKCN20L0YC


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““The economic weakness in late 2019 is already hitting the trends for 2020, with a negative carry-over growth effect.

“Given its close relations with China, the effect of the Coronavirus outbreak on Japan could be significant and will have two channels of transmission: trade and tourism. It now looks possible that Japan’s economy will contract this year.””

https://www.fxstreet.com/news/japan-economy-contraction-is-on-the-cards-bnp-paribas-202002261012


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“Iran’s novel coronavirus death toll has climbed to 19, with 139 confirmed cases of the sickness…

“Rouhani said the virus should not further cripple the country’s economy. Iran has the most coronavirus cases in the Middle East, and is in an ongoing state of economic crisis. US sanctions on the country have seen its currency tank and unemployment grow.”

https://edition.cnn.com/2020/02/26/middleeast/iran-coronavirus-intl/index.html


“Italy’s economy already was in poor shape before the coronavirus hit the northern part of the country,” noted ABN AMRO economist Aline Schuiling and head of financial markets research Nick Kounis.”

https://www.fxstreet.com/news/a-recession-in-italy-looked-likely-even-before-coronavirus-abn-amro-202002261742


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Germany is planning to temporarily suspend its longstanding government debt brake as it attempts to revive its economy.

“The spreading coronavirus and its likely impact on economic growth has added urgency to calls for Europe’s largest economy to loosen the purse strings. The move could open an avenue for limited fiscal stimulus in order to provide relief for indebted regions.”

https://www.telegraph.co.uk/business/2020/02/26/germany-rows-back-longstanding-debt-rules-bid-get-economy-moving/


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The longest economic expansion in American history has survived an unprecedented trade war, a catastrophic tsunami in Japan and a severe crash in oil prices. The fast-moving coronavirus poses yet another grave test.

“The emerging health crisis threatens to dim the brightest part of the United States, if not the world, economy: American wallets.”

https://edition.cnn.com/2020/02/26/economy/coronavirus-recession-consumer-spending/index.html


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Coronavirus is rupturing supply-chains:

“Manufacturers need to assume the worst and make contingency plans.”

https://www.brinknews.com/coronavirus-is-rupturing-supply-chains/


Airlines are turning to some of the world’s hardest-hitting disinfectants, capable of stopping everything from sexually transmitted diseases to the MRSA superbug, in the fight against the coronavirus.”

https://time.com/5791414/airlines-disinfectant-coronavirus/


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As coronavirus continues its spread outside of China, the global airline industry is recalibrating its response to a threat that could be its worst since the financial crisis a decade ago.

“Deutsche Lufthansa AG, Germany’s flagship airline, said Wednesday it would start slashing costs in anticipation of a coming hit to revenues and profits from canceled flights to China, where the virus first emerged. Among other measures, it is offering its staff voluntary, unpaid leave.”

https://www.wsj.com/articles/germanys-lufthansa-makes-cuts-as-it-braces-for-coronavirus-impact-11582712819


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Global stock markets dropped and U.S. government bonds rallied as investors braced for greater economic fallout from the international spread of the coronavirus

“On Wednesday, American authorities said a patient in California might be the first U.S. coronavirus case to be diagnosed without a clear explanation for how the disease was transmitted.”

https://www.wsj.com/articles/global-stocks-extend-declines-as-coronavirus-concerns-mount-11582784087


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The continued threat of coronavirus to consumer spending, supply chains, and trade is bringing the world “to the brink of a global recession” in 2020, the CEO of financial services firm deVere Group said Wednesday.

“”Investors have largely been caught off-guard by the serious and far-reaching economic consequence of the coronavirus,” Green said. “Clearly, this will hit global supply chains, economies across the world and ultimately government coffers too.””

https://markets.businessinsider.com/news/stocks/coronavirus-risk-outlook-global-recession-expert-warns-stock-market-chaos-2020-2-1028942305


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Brad Setser, Senior Fellow for International Economics at the Council on Foreign Relations, and Senior Advisor at Exante Data, on how the coronavirus is impacting global money flows. Hosted by Lisa Abramowicz and Paul Sweeney.”

Audio [full disclosure, I haven’t listened to it]:

https://www.bloomberg.com/news/audio/2020-02-26/helicopter-money-is-decent-response-to-virus-eco-shock-radio


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