Coronavirus: Economic fallout intensifies with crashing oil prices | DW News

global stock markets have plunged over

fears about the coronavirus and a

conflict among major oil-producing

nations has sparked a crash in oil

prices they collapse thirty one and a

half percent at the start of trading

Brent crew now only costs a 31 dollars a

barrel that's the lowest price since

January 1991 of the start of the first

Gulf War

so this contributed to a collapse an

asian stock markets on Monday on the

leading Stock Exchange in Tokyo the

Nikkei fell by more than five percent

while the Hang Seng in Hong Kong lost

almost four meanwhile here in Germany

the dax has toppled almost 8 percent at

the start of trading though it has since

recovered a little bit dwe financial

correspondent Chelsea Delaney joins us

from Frankfurt Germany sir financial

work capital welcome Chelsea how nervous

are the markets I think we've really

moved beyond nervousness to real fear

driven trading one investor described

waking up to two markets this morning as

waking up to Armageddon people are

really quite shocked by the magnitude of

the the moves we're seeing and end

markets today it's by almost any measure

the the sharpest declines since the

financial crisis but in some cases since

September 11th 2001 so these are really

significant declines for global markets

investors had already been really

nervous coming into this week over the

past two weeks there's there's been a

lot of volatility in financial markets

because of the the spread of coronavirus

and the economic worries about the the

containment measures and what kind of

impact that's going to be and now you

have to add into the mix a price shock

for the oil market which is also going

to have a widespread economic impact

none of which sounds like the good news

for the various economies around the


definitely not yeah it's hard to find

any sort of silver silver lining at this

point the talk today is again really

about a global recession if you think

just about coronavirus and the

in fact that is having the the news over

the weekend of these extreme measures

that they're taking in Italy to help

contain the the spread of the virus

there are already a lot of countries

that are really economically weak right

now so Germany Italy Japan all very

close to recession if this virus

continues to spread continues to disrupt

business if we continue to see tourism

just plummet the way it has more supply

chain disruptions consumers stopping

spending on things like that that could

really tip a lot of a lot of economies

into recession and now you think about

the oil price decline that's also going

to add a lot of pressure on to on to oil

exporters so the middle east emerging

markets the united states which has

become a really big player in the global

oil market that's really going to have a

ripple effect on the global economy

Chelsea Delaney in Frankfurt thank you

well the number of corona carrier virus

cases around the world has now surged

over 107 thousand but there is some good

news a China has reported no new locally

transmitted cases outside who Bay

province for a second day meaning the

number of new infections in China is now

falling new infections are also

stabilizing in South Korea at German

efforts to contain the virus include

calling for the cancellation of events

expected to host more than a thousand

people and in the u.s. a cruise ship

with a number of infected people on

board is due to dock in California the

ill will be hospitalized and the rest

taken off the vessel and asked herself

quarantine now to Italy where the

government is enforcing major

restrictions on movements more than 16

million people in the north have been

sealed off from the rest of the country

no one's allowed to leave or enter

certain areas without good reason

the quarantine affects the region of

Lombardy and other northern provinces

including the cities of Milan and Venice

Italy has the most infections outside

China recent figures show 7375 confirmed

cases in 366 deaths tourists have been

told to leave affected regions

immediately and for residents

life will be severely restricted for

nearly a month roadblocks like these

could become a familiar sight across

northern Italy travelers are asked to

explain why they're leaving the so

called red zones authorities say only

those were serious reasons as well as

workers will be allowed to pass in

Milan's normally bustling center only a

fraction of the usual crowds leaving

traders worried about their livelihoods

been empty all day and haven't served a

single meal today in the restaurant this

moment there's an economic impact

everywhere in the galleries and in the

whole centre I think that not only Milan

is closing down the whole world is

closing down there was confusion at

airports and train stations as some

services continued to run officials are

still figuring out how to implement

travel restrictions residents are

adjusting to life under lockdown to

remain positive and calm and live the

best way possible taking all precautions

we have to adapt our lifestyles but we

carry out honest I think this measure is

too restrictive closing down the whole

region of Lombardy seems like a much too

strong reaction foster top league

football games are continuing but in

empty stadiums queues quickly formed at

supermarkets authorities have told

residents not to panic by insisting

supply lines will be kept open panic

took hold in several prisons inmates

rioted over new quarantine restrictions

at least one died in the chaos

the number of infected persons continues

to rise health authorities insist the

caution is necessary there are no parts

of Italy that are completely immune to

the virus there are parts of Italy in

which the virus currently circulates

less but the fact that the virus

circulates depends on our behavior as

Italy's tourism centers empty out the

World Health Organization has praised

the government's bold and courageous

steps which other countries may soon

decide to follow so let's get the

picture from one of Italy's affected

areas freelance journalist Isildur

Bacardi joins us from Milan welcome to

DW how are people coping with the

quarantine well the feeling today I

think is a bit more sad and depressed

than it was yesterday we kind of like

we're starting to understand that this

is going to be a long journey and it's

it's sad to be at home but at the same

time people are also starting to

understand that this is like a very

drastic measure in order to help the

health public system because there are

not enough intensive care spots that we

can actually use so this is like a very

important measure that we need to put in

place and we saw in the report we

touched on the effect on business and

how is the quarantine affecting

businesses there in Milan well I haven't

been out of course because I can't but

I've seen that many shops I've seen the

past few days the shops are quite empty

and restaurants are quite empty cafes

are mainly empty but the government has

assured that we're not gonna have any

problems in importing goods in letting

Goods pass through this area that is now

called the orange area is not red


meaning that mmm pass by as borders and

people that actually want to work

outside if they have like a work reason

they can travel outside the orange zone

and so what is the government doing to

try and offset the economic impacts of

this outbreak well Joseph Picanto said

our prime minister said that he's going

to spend 7.5 billion euros in helping

the companies and the families are

affected by this but he also said that

at the end of this shock economic

measure will be put in place ito he

talked about Genova model which was the

model that was put in place right after

the miranda bridge fell a year and a

half ago meaning that it will try to

stop political fight and Braque a

contained bureaucracy in order to put

new measure economic measure in place

good talking to you try and stay safe

Silvia Bacardi and Milan thank thank you

well Germany has recorded its first

coronavirus death after one of its

citizens died in Egypt in Germany itself

the number of known infections has

surpassed 900 with the country also

increasingly worried about the economic

impact of the outbreak to stop the virus

to stop the spread of the virus

Germany's Health Minister Yanis pon has

called for a temporary ban on all

gatherings of more than a thousand

people well joining us now to talk more

about the corona virus and how Germany

is dealing with it we've got our DW

political correspondent nina has and get

hot oedipus from DW business good to see

you both this morning Nina let's start

with you Germany's political leaders

held crisis talks about the coronavirus

late into the night what did they decide

well one of the major decisions is of

course this official recommendation by

the German government to cancel big

gatherings of more than a thousand

people that is definitely a big change

in tone it is still up to read and the

lawmakers and organizers to implement

this ban and to have the final say but

they've already said that it comes very

close to being an official order by the

German government and so that is

definitely something that we didn't see

last week then of course they also

agreed to implement a big aid package

for the German economy because there is

big concern that this might affect the

German economy really strongly and so

there will be liquidity packages and

short work time agreements will be made

easier for companies so they will be

compensated if they decide for example

to keep their employees at home so

public health is obviously the first

priority for the German government as it

is for others but the economy Germany

has an export-driven economy this is a

worldwide crisis with the coronavirus

Gerhardt how is the coronavirus expected

to impact the German economy well it is

already impacting the German economy

very much mainly of course the the

airline industry anything connected with

travel people of staying at home

meetings and gatherings are being

cancelled people are not going anywhere

so the airline industries are already

asking the government to provide some

money but that's not the only problem

one it's gone one is containment the

containment measures the other problem

is China China is a not buying anything

at the moment because they're not

producing anything they're not buying

any cars or anything and secondly many

German companies are many companies

around the world rely on China for their

supply side and they're just not getting

materials and parts out of China that is

hitting the economy hard on the plus

side though but Nina just said the aides

for for the German economy Germany has a

big budget surplus so that the money is

there within a unique position there

Nina Germany has around 900 confirmed

cases of coronavirus so far can the

German healthcare system cope with a

rapid spread of the virus well whenever

I followed those press conferences last

week it was very clear that the German

Health Ministry is extremely proud that

the numbers in Germany are comparable

low still and if you look at Italy it's

a completely different story and here in

Germany the authorities say that they're

proud that they have managed to keep the

numbers low for a relatively long time

especially in those crucial first weeks


because that bought them some time to

find out more about the virus and to

find out where they needed to

concentrate their efforts and so this

now they say has made the health system

fairly resilient to that crisis of

course everybody is asking themselves

what do we do if everybody gets sick at

the same time is that still something

that we can cope with and so of course

that is why people are trying to contain

the virus as much as possible still and

there's also an export ban on crucial

medical equipment because people have

found that some of those special

equipment and that doctors need to deal

with sick patients at home that they

were exported abroad and that is no

longer a situation that Germany can

afford the corona virus is making itself

felt around the world in all aspects of

life this is reflected in the oil price

Gerhardt to understand there's been a 30

percent drop in in the price of oil

attributed to the corona pox yeah well

the corona crisis actually triggered

that because especially demand in China

is way down and that demand goes down

prices go down now last week that OPEC

and OPEC plus OPEC and Russia the two

biggest exporters are Saudi Arabia and

and Russia they tried to cut production

to cut the supplies at a keep prices

stable they couldn't it couldn't agree

to do that and so sorry Arabia started a

price war it right in the middle of this

corona crisis not a good idea the world

economy thinks the world economy ethem

if you look at the world economy as a

patient and oil it's the lifeblood

there's a severe drop in pressure right

now blood pressure right now in the

world a world economy hitting a patient

that is already infected with a corona

virus so this is very very serious and

we should keep having a look at it go

thank you so much care hotel furs from

DW business and Nena has our political

correspondent thanks to you but