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ECB plans measures against risks of spreading coronavirus

The European Central Bank said it was prepared to take the appropriate measures against the risks facing the economy because of the spread of the coronavirus, France Press reported.
“The coronavirus epidemic is one situation that is developing rapidly and which poses risks to the economic outlook and to the functioning of markets,” the bank's head, Christine Lagarde, said in a statement.

"The ECB closely monitors the situation and its impact on the economy and medium-term inflation”, Lagarde adds.

"We are ready to take appropriate and targeted measures that will be needed,” Lagarde said.

On Friday, US Federal Reserve Management Chief Jerome Powell also said his institution was prepared to intervene if necessary in relation to the impact of the coronavirus outbreak on the US economy, BTA reports.

Today, the ministers of finance and central bankers of the G7 countries will discuss the situation with the coronavirus and its impact on the economy in a video conference call. It will be led by U.S. Finance Secretary Steven Mnuchin and Powell. The US is the rotating chairman of the G7.

A similar video conferencing will be held between the euro area finance ministers on Wednesday, according to French Finance Minister Bruno Le Mer.

Apparently investors have been reassured in anticipation of budget or currency support measures because the leading indices on the New York exchange reported a jump after last week saw a record drop, France Press notes.

The Dow Jones Industrial Index rose 5.09 percent to 26,703.32 points after the week before collapsed 12 percent.

The Nasdaq technology index rose 4.49 percent to 8952.17 points and the broader Standard & Poor's 500 index jumped 4.60 percent to 3090.23 points.

At the same time, different companies are taking different measures at the height of the epidemic. Google asked about 8,000 people of its staff at its European headquarters in Dublin to work from home tomorrow as a precaution after a staff member exhibited flu-like symptoms, Reuters reported.

On Saturday, Ireland confirmed a first case of contagion and closed a school where the infected person was studying.

In Paris, the tourist exhibition was cancelled, which was supposed to be held from 12 to 15 March and which was expected to attract 100,000 visitors, reported France Press.

European travel company TUI said it plans to cut the administrative budget, freeze hiring new people and postpone non-critical projects, Reuters reported.

Latham Airlines announced that it was temporarily suspending its flights between Sao Paulo in Brazil to Milan, France Press reported.

Until now, the company had seven flights a week between the two cities. The suspension will be until April 15. In Brazil, there have been two cases of contagion - men living in Sao Paulo who have recently been in the Lombardy area in which Milan is located.


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