The Finance Ministers of G7 countries (the U.S., Japan, Germany, the UK, France, Italy, and Canada) will discuss measures on the fight against coronavirus and its influence on the economy via video-conference, as Reuters reports.
U.S. Treasury Secretary Steven Mnuchin and Federal Reserve Chairman Jerome Powell will participate in the talks.
The call is planned for 7 a.m. EST (1200 GMT), in two or two and a half hours before the opening of the U.S. stock markets.
Soon after the call, Mnuchin will provide a report to the Ways and Means Committee of the U.S. House of Representatives concerning the offered budget of Trump’s administration for 2021. Trump’s administration asked Congress to allocate extra $2.5 billion for the fight against coronavirus.
Futures markets are betting that the Fed will provide a number of stimulus for protection of the U.S. economy from the influence of Covid-19.
“There will be concerted action. Yesterday I spoke with the G7 president, the U.S. Treasury Secretary Steven Mnuchin, and this week we will have a meeting by phone of the finance G7 ministers to coordinate our responses,” Finance Minister of France Bruno Le Maire told France 2 television.
According to him, the influence of the coronavirus outbreak on the economic growth of France ‘will be much more significant’ than his earlier predictions on the reduction of the production by 0.1%. Moreover, hotels, restaurants, air transport, and entertainment sectors suffer the most from the virus.
German Finance Minister Olaf Scholz confirmed that Berlin and Paris follow closely the spread of the virus and ‘will take decisive action if necessary’.
The Organization for Economic Cooperation and Development warned about severe economic recession due to the epidemic and urged the governments and central banks to react to the situation.
As we reported, Ukraine has a confirmed case of COVID-19, or coronavirus. The case spotted in the Chernivtsi region. A man returned to Ukraine from Italy and entered Ukraine through the border with Romania.