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Britain, Italy Announce War Chests to Try to Halt Impact of Coronavirus

Reuters

   LONDON/ROME - Britain announced a $39-billion war chest to soften the
   economic impact of the coronavirus after the Bank of England cut
   interest rates on Wednesday and Italy, the worst-affected country
   outside China, said it might further tighten already draconian curbs.

   U.S. President Donald Trump, who for weeks played down the seriousness
   of the illness and blamed "fake news" for its spread, said on Tuesday
   he would ask Congress for a tax cut for workers and other "very major"
   stimulus moves to ease the economic effect, but the details were
   unclear.

   The coronavirus, which emerged in China in December, has spread around
   the world, halting industry, bringing flights to a standstill, closing
   schools and forcing the postponement of sporting events and concerts.
   Even the Tokyo Summer Olympics are in question.

   The West has watched in shock as infections have ballooned in Italy,
   Iran, France and Spain after more moderate growth elsewhere.

   German Chancellor Angela Merkel said up to 70% of the world's
   population was likely to be infected in the absence of a cure.

   "When the virus is out there, the population has no immunity and no
   therapy exists, then 60 to 70% of the population will be infected," she
   told a news conference in Berlin.

   The Bank of England joined many other countries in cutting interest
   rates, by half a percentage point, and announced support for bank
   lending.

   Britain also launched a 30-billion pound ($39-billion) economic
   stimulus plan as new finance minister Rishi Sunak said the economy
   faced a "significant impact" from the spread of the virus, even if it
   was likely to be temporary.

   "Up to a fifth of the working-age population could need to be off work
   at any one time. And business supply chains are being disrupted around
   the globe," Sunak said in an annual budget speech to parliament.

   He announced a package of measures to help companies facing a cash-flow
   crunch, including a year-long suspension of a property tax paid by
   smaller firms. The health system and other public services would
   receive an extra 5 billion pounds to help counter the spread of the
   coronavirus.

   More restrictions possible in Italy

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