The coronavirus outbreak is likely to have a bigger effect on the world economy than the outbreak of Severe Acute Respiratory Syndrome some 20 years ago, European Central Bank governing council member Klaas Knot said on Thursday.
* Dollar down to two-week low as Treasury yields slide. * Analysts say rate expectations in U.S. falling fastest. * Euro recovers back above $1.09, yen also gains vs dlr. * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh. By Tommy Wilkes.
The European Central Bank won't be able to ignore the risks if the coronavirus gains a firm foothold in Europe, ECB Executive Board member Isabel Schnabel said on Thursday. In response to a question on how monetary policy can respond to coronavirus, Schnabel said: "If it turns out that the coronavirus becomes more persistent...we cannot look through it."
Malaysia's interim premier Mahathir Mohamad on Thursday unveiled a 20 billion ringgit stimulus to counter the impact of the coronavirus outbreak, but lowered the country's growth forecast and raised its fiscal deficit estimate. The stimulus includes tax breaks and rescheduling of loans for companies affected by the virus outbreak, and cash aid for some, he said.
Think tank Prometeia on Thursday said it expected Italy to fall into recession in the first quarter following the coronavirus outbreak in northern regions and as it forecast a 0.3% contraction in economic output for 2020.
Euro zone economic sentiment improved more then expected in February on more confidence among consumers and in industry despite the global outbreak of the coronavirus, European Commission data showed on Thursday. The Commission said economic sentiment in the 19 countries sharing the euro rose to 103.5 points this month from 102.6 in January, continuing a steady upward trend since October.
Britain received the highest number of immigrants from outside the European Union since 2004 in the year to the end of September, driven by an increased number of Chinese and Indian students, official figures showed on Thursday. Total net immigration reached 240,000 in the 12 months to September 2019, after 642,000 people moved to Britain and 402,000 left.
Malaysia's interim prime minister Mahathir Mohamad on Thursday announced a 20 billion ringgit stimulus package to counter the impact of the coronavirus outbreak. The economic stimulus includes tax breaks and rescheduling of loans for companies affected by the virus outbreak, and cash aid for some, he said.
FRANKFURT--Bank lending to businesses in the eurozone grew at an unchanged annual pace in January as in December, the European Central Bank said Thursday. The annual growth rate of adjusted loans to nonfinancial corporates stood at 3.2% in January, unchanged from the previous month, the ECB said. The annual growth rate of adjusted loans to households increased to 3.7% in January from 3.6% in December, the ECB said.
* Dollar down to two-week low as Treasury yields slide. * Analysts say rate expectations in U.S. falling fastest. * Euro recovers back above $1.09, yen also gains. * Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh. By Tommy Wilkes.
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