Indian Prime Minister Narendra Modi announced a <a href="https://www.wionews.com/india-news/pm-modi-announces-rs-20-lakh-crore-economic-package-lockdown-40-guidelines-to-be-out-soon-298288">Rs 20 lakh crore ($266 billion) support package </a>for India's economy on Tuesday to help mitigate the damage caused by the coronavirus.

The stimulus value in dollar terms is almost equivalent to Pakistan's annual GDP of $284 billion. It is higher than the GDP of 149 countries including Vietnam, Portugal, Greece, New Zealand and Romania.

The package is worth double the enterprise value of India's most valued company, Reliance Industries. The stimulus amount is five times the personal wealth of Mukesh Ambani.

India's economic package is twice the wealth of 10 top billionaires. as per Bloomberg billionaire's index, the 10 top wealthiest Indians own wealth of $147 billion. The stimulus announced is 1.8 times bigger than that.&nbsp; 
 
<a href="https://www.wionews.com/india-news/key-highlights-of-pm-modis-address-to-nation-298296">Also read: Key highlights of PM Modi's address to the nation&nbsp;</a>

The stimulus is also equal to market capital of JP Morgan and Mastercard, the two finance sector giants. It also surpasses the market cap of other global companies such as Intel, Verizon, Coca-Cola and Pfizer.

It is also around 20 per cent of the market value of all the stocks listed on the Bombay Stock Exchange. BSE's total market cap is at around Rs 121 lakh crore.

Apart from the RBI assistance, the government had last month announced Rs 1.74 lakh crore to provide benefits to the poor, including cash transfers, Rs 50 lakh insurance cover and steps to ensure food security.

(With inputs from agencies)

Indian Prime Minister Narendra Modi announced a Rs 20 lakh crore ($266 billion) support package for India's economy on Tuesday to help mitigate the damage caused by the coronavirus.

Indian Prime Minister Narendra Modi announced a Rs 20 lakh crore ($266 billion) support package for India's economy on Tuesday to help mitigate the damage caused by the coronavirus. The stimulus value in dollar terms is almost equivalent to Pakistan's annual GDP of $284 billion. It is higher than the GDP of 149 countries including Vietnam, Portugal, Greece, New Zealand and Romania. The package is worth double the enterprise value of India's most valued company, Reliance Industries. The stimulus amount is five times the personal wealth of Mukesh Ambani. India's economic package is twice the wealth of 10 top billionaires. as per Bloomberg billionaire's index, the 10 top wealthiest Indians own wealth of $147 billion. The stimulus announced is 1.8 times bigger than that. Also read: Key highlights of PM Modi's address to the nation The stimulus is also equal to market capital of JP Morgan and Mastercard, the two finance sector giants. It also surpasses the market cap of other global companies such as Intel, Verizon, Coca-Cola and Pfizer. It is also around 20 per cent of the market value of all the stocks listed on the Bombay Stock Exchange. BSE's total market cap is at around Rs 121 lakh crore. Apart from the RBI assistance, the government had last month announced Rs 1.74 lakh crore to provide benefits to the poor, including cash transfers, Rs 50 lakh insurance cover and steps to ensure food security. (With inputs from agencies)

Indian PM Narendra Modi's stimulus package almost equal to Pakistan's annual GDP

India's manufacturing output contracted 20.6 per cent in March from a year earlier, indicating the impact of the nationwide lockdown imposed to contain the coronavirus outbreak -- and also&nbsp;fanning hopes that the central bank will ease rates further to kick-start the economy amid the crisis.

The data was presented by the government on Tuesday.

The 20.6% fall in manufacturing was driven by the closure of thousands of factories after the government imposed a national lockdown in the last week of March.

Industrial output, which includes manufacturing and mining, contracted 16.7 per cent for the corresponding period, compared to analysts' forecast of 8.7 per cent fall in a Reuters poll.

The industrial output for the fiscal year 2019/20 ending March contracted 0.7 per cent over the corresponding period of the previous year.

Private economists and rating agencies say India's economy could contract by up to 0.5% in the current financial year beginning April, compared with earlier government estimates of around 6% growth. This is likely to encourage the Reserve Bank of India (RBI) to ease rates and pump in more liquidity.

In April, the unemployment rate rose to 23.5% from 8.7% the previous month, data released by the Centre for Monitoring Indian Economy, a Mumbai-based think tank, showed.

Meanwhile, the ministry of statistics said the Indian government did not release headline retail inflation figures for the month of April due to inadequate data collection.

The data are usually collected from 1,114 urban markets and 1,181 villages through personal visits, which have been suspended since March 19 due to the lockdown announced by the government to contain the spread of the coronavirus.

Modi’s government is starting to pull back from one of the world’s tightest lockdowns of 1.3 billion people that has left millions out of work and stranded in cities far from home while infections keep rising.

India’s coronavirus infections have crossed 70,000, including 2,293 deaths.

(with inputs from Reuters)

India's manufacturing output contracted 20.6 per cent in March from a year earlier, indicating the impact of the nationwide lockdown imposed to contain the coronavirus outbreak -- and also fanning hopes that the central bank will ease rates further to kick-start the economy amid the crisis.

India's manufacturing output contracted 20.6 per cent in March from a year earlier, indicating the impact of the nationwide lockdown imposed to contain the coronavirus outbreak -- and also fanning hopes that the central bank will ease rates further to kick-start the economy amid the crisis. The data was presented by the government on Tuesday. The 20.6% fall in manufacturing was driven by the closure of thousands of factories after the government imposed a national lockdown in the last week of March. Industrial output, which includes manufacturing and mining, contracted 16.7 per cent for the corresponding period, compared to analysts' forecast of 8.7 per cent fall in a Reuters poll. The industrial output for the fiscal year 2019/20 ending March contracted 0.7 per cent over the corresponding period of the previous year. Private economists and rating agencies say India's economy could contract by up to 0.5% in the current financial year beginning April, compared with earlier government estimates of around 6% growth. This is likely to encourage the Reserve Bank of India (RBI) to ease rates and pump in more liquidity. In April, the unemployment rate rose to 23.5% from 8.7% the previous month, data released by the Centre for Monitoring Indian Economy, a Mumbai-based think tank, showed. Meanwhile, the ministry of statistics said the Indian government did not release headline retail inflation figures for the month of April due to inadequate data collection. The data are usually collected from 1,114 urban markets and 1,181 villages through personal visits, which have been suspended since March 19 due to the lockdown announced by the government to contain the spread of the coronavirus. Modi’s government is starting to pull back from one of the world’s tightest lockdowns of 1.3 billion people that has left millions out of work and stranded in cities far from home while infections keep rising. India’s coronavirus infections have crossed 70,000, including 2,293 deaths. (with inputs from Reuters)

India's manufacturing output contracts 20.6% in March

With the way this pandemic is playing out, India could especially be hit hard simply because we don’t have a sizeable economy to service 1.4 billion people. The last twenty years of economic development in the country has been substantial; we pulled nearly 240 million people out of poverty. Unfortunately, if we do not handle things right in the next two years' time, we may push them straight back below the poverty line. &nbsp;

But in all this, there are bright spots. Without a strong investment from outside the country, we will not have the capability to put the markets and industry back in place and move populations back to their workplaces.&nbsp;

There is a great opportunity for India as the trust that people had in the Chinese economy has been seriously eroded. Already Japan has offered over $500 billion dollars to move their industry out of China, and the United States could do something even more drastic. Over 300 top companies in the world may start partially moving out of China.&nbsp;

India is eminently positioned to benefit if they come here even for partial production. This will need a very determined effort from the industry lobby, the businesses, and the government has to pitch in. We must set up a single-point clearance without any bureaucratic process – for land, electricity, and all clearances. If necessary, pass an Economic Emergency bill to empower states to execute the facilitation of big investments. A billion-dollar-plus investment must be given immunity from PILs and cost litigation for a period of five years. If we do this, we can get the economy buzzing. It all depends on how efficiently and hungrily we grab this opportunity.&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

With the way this pandemic is playing out, India could especially be hit hard simply because we don’t have a sizeable economy to service 1.4 billion people. The last twenty years of economic development in the country has been substantial; we pulled nearly 240 million people out of poverty.

With the way this pandemic is playing out, India could especially be hit hard simply because we don’t have a sizeable economy to service 1.4 billion people. The last twenty years of economic development in the country has been substantial; we pulled nearly 240 million people out of poverty. Unfortunately, if we do not handle things right in the next two years' time, we may push them straight back below the poverty line. But in all this, there are bright spots. Without a strong investment from outside the country, we will not have the capability to put the markets and industry back in place and move populations back to their workplaces. There is a great opportunity for India as the trust that people had in the Chinese economy has been seriously eroded. Already Japan has offered over $500 billion dollars to move their industry out of China, and the United States could do something even more drastic. Over 300 top companies in the world may start partially moving out of China. India is eminently positioned to benefit if they come here even for partial production. This will need a very determined effort from the industry lobby, the businesses, and the government has to pitch in. We must set up a single-point clearance without any bureaucratic process – for land, electricity, and all clearances. If necessary, pass an Economic Emergency bill to empower states to execute the facilitation of big investments. A billion-dollar-plus investment must be given immunity from PILs and cost litigation for a period of five years. If we do this, we can get the economy buzzing. It all depends on how efficiently and hungrily we grab this opportunity. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

To get the  economy buzzing, India should woo foreign industry

The global economy is facing its worst downturn since the great depression. Over 3.8 million people lost their jobs in U.S. last week. Meanwhile India's largest car-maker Maruti sold zero cars in April.

Coronavirus: The Global economy is bleeding | Gravitas

Spain's&nbsp;Economy Minister Nadia Calvino reported that country's economy is expected to see a huge dip in the current year.

Country's Gross Domestic Product (GDP) might contract 9.2 per cent in the year of pandemic. She further explained that the unemployment will increase to 19 per cent in the country. She said the crippling condition of the economy is due to the&nbsp;pandemic.

<a href="https://www.wionews.com/world/trump-claims-hes-seen-evidence-coronavirus-originated-in-chinese-lab-295950">Also read:&nbsp;Trump claims he's seen evidence coronavirus originated in Chinese lab</a>

In a press conference, she explained that the Bank of Spain expected "asymmetric V-shape recovery, with the deepest decrease in the second quarter and then a strong and gradual recovery in the second half of the year," she said. "Forecasts are prudent and consistent."

She assured people that GDP is expected to recover in 2021 and expand 6.8 per cent. Before the pandemic hit the country, Calvino has forecasted a growth if 1.6 per cent in country's GDP. The government has also forecasted 2020 deficit forecast to 10.34 per cent and a 2020 debt to GDP ratio at 115.5 per cent now.

<a href="https://www.wionews.com/world/why-coronavirus-impact-may-be-catastrophic-for-children-296055">Also read:&nbsp;Why coronavirus impact may be catastrophic for children</a>

"This is the widest deficit since 2012 when Spain reached 10.7%," explained Budget Minister Maria Jesus Montero.&nbsp;

In its forecasts to the European Commission, the government sees GDP moving from two percent growth in 2019 to a 9.2 percent drop this year, while unemployment would jump to 19 percent from 13.8 percent at the end of 2019, Economy Minister Nadia Calvino told a press conference.

Spain was one of the worst-hit countries with more 24,000 positive coronavirus cases. However, the country has seen some relief in the cases now, and is expecting to ease the strict lockdown more in the coming weeks.

(With inputs from agencies)

Spain's Economy Minister Nadia Calvino reported that country's economy is expected to see a huge dip in the current year. Country's Gross Domestic Product (GDP) might contract 9.

Spain's Economy Minister Nadia Calvino reported that country's economy is expected to see a huge dip in the current year. Country's Gross Domestic Product (GDP) might contract 9.2 per cent in the year of pandemic. She further explained that the unemployment will increase to 19 per cent in the country. She said the crippling condition of the economy is due to the pandemic. Also read: Trump claims he's seen evidence coronavirus originated in Chinese lab In a press conference, she explained that the Bank of Spain expected "asymmetric V-shape recovery, with the deepest decrease in the second quarter and then a strong and gradual recovery in the second half of the year," she said. "Forecasts are prudent and consistent." She assured people that GDP is expected to recover in 2021 and expand 6.8 per cent. Before the pandemic hit the country, Calvino has forecasted a growth if 1.6 per cent in country's GDP. The government has also forecasted 2020 deficit forecast to 10.34 per cent and a 2020 debt to GDP ratio at 115.5 per cent now. Also read: Why coronavirus impact may be catastrophic for children "This is the widest deficit since 2012 when Spain reached 10.7%," explained Budget Minister Maria Jesus Montero. In its forecasts to the European Commission, the government sees GDP moving from two percent growth in 2019 to a 9.2 percent drop this year, while unemployment would jump to 19 percent from 13.8 percent at the end of 2019, Economy Minister Nadia Calvino told a press conference. Spain was one of the worst-hit countries with more 24,000 positive coronavirus cases. However, the country has seen some relief in the cases now, and is expecting to ease the strict lockdown more in the coming weeks. (With inputs from agencies)

Spain's crippling economy to contract 9.2% in 2020, warns Spanish government

Days after the coronavirus hit the country hard the US economy is all set to reopen. US President Donald Trump said that the country all set to start its economy and will show a rapid recovery.

US President predicts rapid economic recovery for US Economy

Recently, discharged from hospital after being treated from the coronavirus, British PM Boris Johnson returned to work on April 21. He spoke with US President Donald Trump over a phone call. Both the leaders discussed the need to reopen economies.

UK PM Boris Johnson agrees on the need to reopen economies: Spoke to Donald Trump over call

In the US, more than a dozen states have witnessed anti-lockdown protests. In Brazil, President Jair Bolsonaro joined an anti-lockdown protest. Are leaders putting the economy before lives of the people?

Coronavirus: Why are people protesting against lockdowns? | Gravitas

China has criticized India for tweaking its foreign direct investment rules as the coronavirus pandemic ravages the economy. Watch report.

China objects to India tweaking FDI rules: Move violates WTO norms

The pandemic Coronavirus (COVID-19) derail the global economy. The alarm bell rings at International Monetary Fund & the world bank.

Pandemic COVID-19 derail the global economy, pressure mounts on IMF & world bank

The International Monetary Fund issued a stark warning on April 15 about the coronavirus’s economic toll. It said that the world is facing its worst downturn since the Great Depression as shuttered factories, quarantine, and national lockdowns cause the economic output to collapse.

IMF predicts worst economic downturn: Proposes 1 trillion-dollars support

The global economy will contract by 3% this year as countries around the world shrink at the fastest pace in decades

Is the world prepared for the worst recession

The chief economist of the International Monetary Fund (IMF) Geeta Gopinath is addressing the media live. Watch video.

IMF's grim forecast for global economy: Chief economist Geeta Gopinath addresses media

Until last year, leading countries were happy to call China the workshop of the world. Also read: Coronavirus replaced by racism, xenophobia and hate against foreigners in China Not anymore, the over dependence on China has cost them dearly.

Until last year, leading countries were happy to call China the workshop of the world. Also read: Coronavirus replaced by racism, xenophobia and hate against foreigners in China Not anymore, the over dependence on China has cost them dearly. China has been the world's largest exporter of goods since 2009 but this might change now in the times of "social distancing". Also read: France to extend the lockdown as Thailand begins mobile testing Maybe, the time has come to launch a campaign of "economic distancing" from China. Two countries are ready to do just that, the United States and Japan. Both countries are badly hit by the coronavirus. They are learning their lessons and taking steps to bring their businesses back home. Japan is taking the lead. On Tuesday, the country unveiled its largest-ever economic stimulus package. It's worth a whopping $990 billion. This "world-class" relief package has a unique allocation. Japan wants to keep its businesses safe. So, it is ready to pay them to shift their factories out of China. A little more than $2 billion has been set aside for this. This fund will be used to pay businesses who want to move back to Japan. Another $215 million will be made available to those who want to move to other countries. This has caught Beijing off guard. China's foreign ministry was asked about Japan's moves yesterday. What about the United States? The exodus of American companies had already begun. Thanks to US President Donald Trump, his "America First" agenda had forced companies to rethink their supply chains. The trade war forced some to ditch China. Last year, more than 50 American companies had reportedly escaped from China. Now, they could leave at a much faster rate. A report by consulting firm Kearney claims companies are rethinking their approach. Now, they would want to diversify their sourcing and supply. A fragile system that broke instantaneously, when China shutdown its entire country. Now, half of the earth's humanity is under a lockdown. That's more than three billion people. Companies that could not get their suppliers earlier, now can't sell because the stores need to remain shut. The losses are mounting and the coronavirus outbreak is a black swan moment for the world. It is forcing countries, even businesses to rethink their approach. Japan and the United States might have just shown them the way. Which country is the next global export hub? A group of five countries, known as the "mighty five" -- could benefit from withdrawals from China. India is one of them. It can offer manpower at the same scale as China. The trade war benefited some emerging markets. They will be fighting for new contracts after the global lockdown lifts. Vietnam is one of them. Before the coronavirus crisis, it was exporting around 5,000 products to the United States. Thailand, Malaysia and Indonesia could gain too, again due to, low labour and raw material costs.

As coronavirus grips China, Japan & US take lead to pull out companies

The world has come to a standstill while the global economy and markets are in a tailspin. While the global economy is possibly heading into a recession, there is still hope of quick recovery&nbsp;if the virus starts subsiding in a month or two.

Central banks and governments are going all out to contain economic collapse. Still enough damage is caused and the economy can be as bad as the 2008 crisis or even worse. Although if we look across the globe different areas are painted with a different brush. So, let’s try to find out what’s in store for the world in an era after the Coronavirus crisis is over.

The US damaged severely but its growth magnets still intact: An optimist of all times, US President Donald Trump has also declared this is bad and more than 100,000 people can die in the US. Various estimates suggest that the US economy is slipping into recession while unemployment is shooting up.&nbsp;

Its condition will be critical but will recover strongly because before Coronavirus crisis struck, the world's largest economy&nbsp;was on a strong footing. Its GDP grew at a moderate pace, unemployment was at a 50-year low and its global banks were strong. So, a strong foundation gives hope of a revival. Besides this, its three growth magnets would continue to attract the best talent. The top layer of finance, tech and show business would love to work in Wall Street, Silicon Valley and Hollywood now, even at faster rates because the rest of the world is relatively more damaged. Therefore, it is likely to emerge out of ashes like a phoenix.

China: 
 
Even before Coronavirus pandemic struck, the Chinese GDP growth rate was at 30 years low, its economy was showing cracks and trade war was damaging the Chinese economy. When the virus entered in this mix it slowed Chinese economy even further. During January-February, its industrial production figures and its retail sales data were very gloomy. It became clear that there will be a contraction in the Chinese economy during the January-March quarter. However, China was able to contain it just in Wuhan so the situation in the country is getting better. Economic indicators like PMI, shipping data, road congestion is reported to be improving. This implies that economic revival has begun. In fact, various reports predict that China will be the fastest-growing economy this year. Although risks associated with China are global and there could be a political backlash due to lack of transparency and fall in export demand (which contributes to 20 per cent of its GDP). So the Chinese economy showed signs of crack before virus but it was able to contain virus quickly. Therefore cracks did not break open and the economy could very well soon be back on track. Also with Coronavirus, the attention of the US has temporarily shifted away from the trade war and its high trade deficit with China. This will reduce China's risk for some more time.

India may recover quickly if the virus is contained in stage 2: In India, things were bleak even before Coronavirus knocked at its doors. GDP growth fell from 8 per cent to around 5 per cent, credit crunch, poor business sentiment, fiscal deficit breaching target, uneven monsoon and most importantly a fall in consumption were the risks already present. Even if the pandemic becomes worse, there is a possibility of economy quickly coming back on track and there would be lower damage due to coronavirus as compared to many other global nations. So, the increase in unemployment and bankruptcies would be relatively less than the rest of the world. The situation of NPAs was resolved to a large extent even before virus so that provided some cushion. Fall in oil price would also provide some relief. All that will ensure quick recovery and inflow of foreign money. Moreover, various estimations indicate that besides China, India can be the only major country to have positive growth.&nbsp;

So, the April-June quarter will be problematic but after that things will start improving and in October quarter we may see growth speeding up. &nbsp;

Europe: 
 
The European economy was already weak due to double whammy of a trade war and Brexit. Germany, UK even went in contraction for a quarter last year, even for October-December quarter UK GDP stagnated. Due to the ageing population coronavirus shook the continent and can cause long-lasting impact. Brexit negotiations are not on the best footing also. European Union is unable to come up with joint action which indicates the underlying tension between the member states. So all of this poses a serious question about its recovery for a very long time.

Gulf: 
 
Gulf countries are facing a tough time as a fall in oil price will put huge pressure on income. Pilgrimage tourism, holiday tourism and expo events in UAE, Saudi and Iran will take a hit due to Corona pandemic. Since they need to give relief packages, there will be a strain on fiscal deficits. Postponement of Dubai 2020 Expo can impact UAE's plan to diversify the economy away from oil and tensions in OPEC+, with Saudi Arabia and Russia also pose concerns.&nbsp;

Stock Markets: 
 
Go for major indices of the US, China and India, while Europe and Gulf countries can be avoided for the time being. Once virus peaks and markets hit bottom, you can also start dipping in mid-caps.

Sectoral Situation: 
 
As people will be more concerned about health, there would be a large increase in health insurance and hence insurance and healthcare sector would gain. Some banks are quite stable so they would survive but weaker ones will struggle so the wave of mergers and acquisitions in the financial sector can be in offing. IT companies, providing specific services like video streaming, e-commerce, video and teleconferencing stand to emerge victorious as well. For internet giants, advertising revenue can take a hit. But they stand to gain sensational insight in the human mind as to how it reacted during different phases of virus and lockdown. This would help them significantly in attracting user on their sites, retaining them and even influencing them. Cargo and Shipping Industry will recover quickly as people may hesitate to go out,&nbsp;but would continue ordering online. New players like automakers are entering in biotech and new innovations can revolutionise the biotech industry.&nbsp;

Oil Industry: 
 
A fall in oil prices would also reduce the demand for its substitute goods like alternative sources of energy which would impact their development. Since lockdown shows the viability of working from home, commercial real estate can suffer. Due to the rise in unemployment, there isn't any likely rapid recovery in FMCG sector but high ticket items like real estate, passenger vehicles and luxury goods will take even longer to recover. Recovery in Aviation and Tourism will be slow due to the double whammy of rising unemployment and fear of the pandemic. 
For individual stocks company’s management can be the best gauge. As in such time, past data may not be able to indicate future development but efficient, creative management can give assurance that will come up with a way to navigate this tide.

The current situation is like shock therapy and in the post-Coronavirus era, there will be a tectonic shift in the world economic order. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

The world has come to a standstill while the global economy and markets are in a tailspin. While the global economy is possibly heading into a recession, there is still hope of quick recovery if the virus starts subsiding in a month or two.

The world has come to a standstill while the global economy and markets are in a tailspin. While the global economy is possibly heading into a recession, there is still hope of quick recovery if the virus starts subsiding in a month or two. Central banks and governments are going all out to contain economic collapse. Still enough damage is caused and the economy can be as bad as the 2008 crisis or even worse. Although if we look across the globe different areas are painted with a different brush. So, let’s try to find out what’s in store for the world in an era after the Coronavirus crisis is over. The US damaged severely but its growth magnets still intact: An optimist of all times, US President Donald Trump has also declared this is bad and more than 100,000 people can die in the US. Various estimates suggest that the US economy is slipping into recession while unemployment is shooting up. Its condition will be critical but will recover strongly because before Coronavirus crisis struck, the world's largest economy was on a strong footing. Its GDP grew at a moderate pace, unemployment was at a 50-year low and its global banks were strong. So, a strong foundation gives hope of a revival. Besides this, its three growth magnets would continue to attract the best talent. The top layer of finance, tech and show business would love to work in Wall Street, Silicon Valley and Hollywood now, even at faster rates because the rest of the world is relatively more damaged. Therefore, it is likely to emerge out of ashes like a phoenix. China: Even before Coronavirus pandemic struck, the Chinese GDP growth rate was at 30 years low, its economy was showing cracks and trade war was damaging the Chinese economy. When the virus entered in this mix it slowed Chinese economy even further. During January-February, its industrial production figures and its retail sales data were very gloomy. It became clear that there will be a contraction in the Chinese economy during the January-March quarter. However, China was able to contain it just in Wuhan so the situation in the country is getting better. Economic indicators like PMI, shipping data, road congestion is reported to be improving. This implies that economic revival has begun. In fact, various reports predict that China will be the fastest-growing economy this year. Although risks associated with China are global and there could be a political backlash due to lack of transparency and fall in export demand (which contributes to 20 per cent of its GDP). So the Chinese economy showed signs of crack before virus but it was able to contain virus quickly. Therefore cracks did not break open and the economy could very well soon be back on track. Also with Coronavirus, the attention of the US has temporarily shifted away from the trade war and its high trade deficit with China. This will reduce China's risk for some more time. India may recover quickly if the virus is contained in stage 2: In India, things were bleak even before Coronavirus knocked at its doors. GDP growth fell from 8 per cent to around 5 per cent, credit crunch, poor business sentiment, fiscal deficit breaching target, uneven monsoon and most importantly a fall in consumption were the risks already present. Even if the pandemic becomes worse, there is a possibility of economy quickly coming back on track and there would be lower damage due to coronavirus as compared to many other global nations. So, the increase in unemployment and bankruptcies would be relatively less than the rest of the world. The situation of NPAs was resolved to a large extent even before virus so that provided some cushion. Fall in oil price would also provide some relief. All that will ensure quick recovery and inflow of foreign money. Moreover, various estimations indicate that besides China, India can be the only major country to have positive growth. So, the April-June quarter will be problematic but after that things will start improving and in October quarter we may see growth speeding up. Europe: The European economy was already weak due to double whammy of a trade war and Brexit. Germany, UK even went in contraction for a quarter last year, even for October-December quarter UK GDP stagnated. Due to the ageing population coronavirus shook the continent and can cause long-lasting impact. Brexit negotiations are not on the best footing also. European Union is unable to come up with joint action which indicates the underlying tension between the member states. So all of this poses a serious question about its recovery for a very long time. Gulf: Gulf countries are facing a tough time as a fall in oil price will put huge pressure on income. Pilgrimage tourism, holiday tourism and expo events in UAE, Saudi and Iran will take a hit due to Corona pandemic. Since they need to give relief packages, there will be a strain on fiscal deficits. Postponement of Dubai 2020 Expo can impact UAE's plan to diversify the economy away from oil and tensions in OPEC+, with Saudi Arabia and Russia also pose concerns. Stock Markets: Go for major indices of the US, China and India, while Europe and Gulf countries can be avoided for the time being. Once virus peaks and markets hit bottom, you can also start dipping in mid-caps. Sectoral Situation: As people will be more concerned about health, there would be a large increase in health insurance and hence insurance and healthcare sector would gain. Some banks are quite stable so they would survive but weaker ones will struggle so the wave of mergers and acquisitions in the financial sector can be in offing. IT companies, providing specific services like video streaming, e-commerce, video and teleconferencing stand to emerge victorious as well. For internet giants, advertising revenue can take a hit. But they stand to gain sensational insight in the human mind as to how it reacted during different phases of virus and lockdown. This would help them significantly in attracting user on their sites, retaining them and even influencing them. Cargo and Shipping Industry will recover quickly as people may hesitate to go out, but would continue ordering online. New players like automakers are entering in biotech and new innovations can revolutionise the biotech industry. Oil Industry: A fall in oil prices would also reduce the demand for its substitute goods like alternative sources of energy which would impact their development. Since lockdown shows the viability of working from home, commercial real estate can suffer. Due to the rise in unemployment, there isn't any likely rapid recovery in FMCG sector but high ticket items like real estate, passenger vehicles and luxury goods will take even longer to recover. Recovery in Aviation and Tourism will be slow due to the double whammy of rising unemployment and fear of the pandemic. For individual stocks company’s management can be the best gauge. As in such time, past data may not be able to indicate future development but efficient, creative management can give assurance that will come up with a way to navigate this tide. The current situation is like shock therapy and in the post-Coronavirus era, there will be a tectonic shift in the world economic order. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

What's in store for the global economy after coronavirus is over?

Amid the coronavirus pandemic which has now infected over 600,000 people globally, India's auto sector has offered to help the administration and health workers in tackling the outbreak.

Utility vehicle maker Mahindra &amp; Mahindra has announced plans to manufacture low-cost ventilators in its Maharashtra factory. These in-house "Ambu Bag" ventilators will be manufactured for less than ₹7,500. The "Ambu" is an artificial breathing unit, with a prototype bag valve mask equipped with a self-inflating mechanism to aid breathing among ailing patients.

Also read:&nbsp;<a href="https://www.wionews.com/world/us-permits-companies-to-pollute-freely-amid-covid-19-pandemic-289248">US permits companies to pollute freely amid COVID-19 pandemic</a>

"We are simultaneously working with an indigenous maker of ICU ventilators. This device is an interim lifesaver and the team estimates it will cost below ₹7,500", Mahindra Group chairman Anand Mahindra tweeted.

M&amp;M is also set to begin manufacturing a face shield based a design pitched by its partner Ford Motor Company based in the United States. This shield is intended for use by health care providers.

Car maker Maruti Suzuki India intends to produce 10,000 ventilators a month. The company said it will work with AgVa Healthcare to rapidly scale up production of life-saving paraphernalia as the demand arises.&nbsp;

"There can be initial difficulties as ventilator manufacturing is a new area for us but we are using all our functions and resources including engineers, designers and supply chains to manufacture them", said RC Bhargava, the Chairman of Maruti Suzuki India.

<h6>&nbsp;<img alt="face shield" data-entity-type="file" data-entity-uuid="c36629d9-73f2-43c7-8e82-a4a982d8fe36" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%2815%29_20.jpg" /> 
A prototype of the face shield 
&nbsp;</h6>

Krishna Maruti Limited, a joint venture of Maruti Suzuki, would manufacture three-ply masks for supply to the Haryana and Central governments while MSIL's another JV Bharat Seats would make protective clothing required for medical professionals.

South Korean automaker Hyundai Motor has ordered advanced diagnostic testing kits for coronavirus infection from its home country as part of its measures to combat the pandemic. These advanced kits can help serve over 25,000 people.

The doyen of Indian auto sector, Ratan Tata yesterday announced ₹500 crore contribution by Tata Trusts.&nbsp;

The funds will be used for personal protective equipment for the medical personnel, testing kits to increase testing of possible cases, setting up modular treatment facilities for infected patients, and for the knowledge management and training of health workers and the general public.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/clear-we-have-entered-recession-would-be-worse-than-2009-imf-289009">Clear we have entered recession, would be worse than 2009: IMF</a>

This ₹500 crore will be in addition to Tata Sons commitment of ₹1,000 crore in fighting the coronavirus pandemic.&nbsp;

"In this exceptionally difficult period, I believe that urgent emergency resources need to be deployed to cope with the needs of fighting the COVID 19 crisis, which is one of the toughest challenges the human race will face," Tata Trusts chairman Ratan Tata said in a statement.

The country's largest two-wheeler maker Hero MotoCorp has assured its dealers to absorb their unsold BS IV stock. According to estimates, dealers are holding close to 1.5 lakh units of BS-IV stock which remain unsold due to lockdown. With the country accepting BS VI norms from April 1, the dealers won't be able to sell majority of their stock that will lie unsold.

Another two-wheeler major Bajaj Auto has also committed ₹100 crore to assist the administration in containment of the pandemic.

Amid the coronavirus pandemic which has now infected over 600,000 people globally, India's auto sector has offered to help the administration and health workers in tackling the outbreak.

Amid the coronavirus pandemic which has now infected over 600,000 people globally, India's auto sector has offered to help the administration and health workers in tackling the outbreak. Utility vehicle maker Mahindra & Mahindra has announced plans to manufacture low-cost ventilators in its Maharashtra factory. These in-house "Ambu Bag" ventilators will be manufactured for less than ₹7,500. The "Ambu" is an artificial breathing unit, with a prototype bag valve mask equipped with a self-inflating mechanism to aid breathing among ailing patients. Also read: US permits companies to pollute freely amid COVID-19 pandemic "We are simultaneously working with an indigenous maker of ICU ventilators. This device is an interim lifesaver and the team estimates it will cost below ₹7,500", Mahindra Group chairman Anand Mahindra tweeted. M&M is also set to begin manufacturing a face shield based a design pitched by its partner Ford Motor Company based in the United States. This shield is intended for use by health care providers. Car maker Maruti Suzuki India intends to produce 10,000 ventilators a month. The company said it will work with AgVa Healthcare to rapidly scale up production of life-saving paraphernalia as the demand arises. "There can be initial difficulties as ventilator manufacturing is a new area for us but we are using all our functions and resources including engineers, designers and supply chains to manufacture them", said RC Bhargava, the Chairman of Maruti Suzuki India. A prototype of the face shield Krishna Maruti Limited, a joint venture of Maruti Suzuki, would manufacture three-ply masks for supply to the Haryana and Central governments while MSIL's another JV Bharat Seats would make protective clothing required for medical professionals. South Korean automaker Hyundai Motor has ordered advanced diagnostic testing kits for coronavirus infection from its home country as part of its measures to combat the pandemic. These advanced kits can help serve over 25,000 people. The doyen of Indian auto sector, Ratan Tata yesterday announced ₹500 crore contribution by Tata Trusts. The funds will be used for personal protective equipment for the medical personnel, testing kits to increase testing of possible cases, setting up modular treatment facilities for infected patients, and for the knowledge management and training of health workers and the general public. Also read: Clear we have entered recession, would be worse than 2009: IMF This ₹500 crore will be in addition to Tata Sons commitment of ₹1,000 crore in fighting the coronavirus pandemic. "In this exceptionally difficult period, I believe that urgent emergency resources need to be deployed to cope with the needs of fighting the COVID 19 crisis, which is one of the toughest challenges the human race will face," Tata Trusts chairman Ratan Tata said in a statement. The country's largest two-wheeler maker Hero MotoCorp has assured its dealers to absorb their unsold BS IV stock. According to estimates, dealers are holding close to 1.5 lakh units of BS-IV stock which remain unsold due to lockdown. With the country accepting BS VI norms from April 1, the dealers won't be able to sell majority of their stock that will lie unsold. Another two-wheeler major Bajaj Auto has also committed ₹100 crore to assist the administration in containment of the pandemic.

Indian automobile sector releases funds to aid containment of COVID-19

Europe could be staring at a major economic crisis. According to a report, the Coronavirus outbreak could lead to a decade of stagnation for Europe. WION's Executive Editor Palki Sharma Upadhyay has more.

Gravitas: Wuhan Coronavirus: Europe's economy struggles

As global leaders scramble to choose between retaining economic activity to prevent the halt of growth and locking down their countries in order to prevent an outbreak, United States President Donald Trump has chosen to strike a balance.

As the virus is expected to peak in the United States soon, Trump is attempting to avoid an economic meltdown while hoping to contain the virus.

"Our country was not built to be shut down," the President announced on Monday. "We are going to be opening up our country for business because our country was meant to be open".

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/donald-trump-spreading-of-coronavirus-not-fault-of-asian-americans-288166/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

"We are going to get it all going again very soon," he said. Additionally, he openly said that he was not looking at months, but only a few weeks.

The United States recently recorded over 40,000 cases. 100 deaths were also witnessed, a first for the country since coronavirus reached the nation.

Also read:&nbsp;<a href="https://www.wionews.com/world/new-york-state-accounts-for-over-5-of-global-coronavirus-cases-numbers-expected-to-increase-288271" hreflang="en">New York state accounts for over 5% of global coronavirus cases, numbers expected to increase</a>

One of the members of Donald Trump’s coronavirus task force, Dr Deborah Birx claimed that the virus was spreading five times faster in New York than other states.

The president has claimed that things are “bad”, but is sceptical about social distancing.

&nbsp;"If it were up to the doctors, they may say let's keep it shut down, let's shut down the entire world", he claimed.

The conflict has brought out the differing approaches that can be undertaken during a pandemic, which is to lock down the country to save lives, or to forego this in favour of protecting economic growth.

CNN reported that the administration is considering limiting work to younger people, who are less prone to critical complications.

In the face of potential unemployment, the administration is facing a dilemma.&nbsp;

However, most states in the United States have imposed directed people to stay at home, with businesses closed, and schools shut.

<h6><img alt="ppp" data-entity-type="file" data-entity-uuid="b819ce09-f89a-43c2-9e9c-9173aa131a26" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design%20%284%29_47.jpg" /> 
US President Donald Trump speaks during the daily briefing on the novel coronavirus, COVID-19, at the White House, March 23, 2020, in Washington, DC | AFP 
 
&nbsp;</h6>

The US healthcare system is currently ill-equipped to deal with the influx of patients.

The President insisted that “we can do two things at once”, implying that the country need not impose a lockdown and shut down the economy.

However, global trends have made it abundantly clear that there is no middle ground in a situation like this. Countries can either shut their societies down to contain the virus, or work as usual and risk infection.

The man at the helm of the president's task force: Dr Anthony Fauci, was nowhere to be seen alongside Trump. Instead, he attended meetings attacking the pandemic.&nbsp;

Also read:&nbsp;<a href="https://www.wionews.com/world/could-united-states-become-the-next-epicentre-of-covid-19-288258" hreflang="en">Could United States become the next epicentre of COVID-19?</a>

With the number of coronavirus cases rising rapidly, the World Health Organization (WHO) has warned that the United States could become the next epicentre of the pandemic.

“A very large acceleration” in the number of coronavirus cases has been recorded recently.

Out of the new cases recorded in the last 24 hours, 85 per cent came from Europe and the United States. Out of these, 40 per cent cases alone came from the US.

Recently, the president tweeted out and reaffirmed his faith in Americans to aptly deal with the virus.

"Our people want to return to work," he said on Twitter. "They will practice Social Distancing and all else, and Seniors will be watched over protectively &amp; lovingly. We can do two things together. THE CURE CANNOT BE WORSE (by far) THAN THE PROBLEM!"

Also read:&nbsp;<a href="https://www.wionews.com/world/covid-19-spain-virus-death-toll-rises-by-514-to-2696-288261" hreflang="en">COVID-19: Spain virus death toll rises by 514 to 2,696</a>

(With inputs from agencies)

As global leaders scramble to choose between retaining economic activity to prevent the halt of growth and locking down their countries in order to prevent an outbreak, United States President Donald Trump has chosen to strike a balance.

As global leaders scramble to choose between retaining economic activity to prevent the halt of growth and locking down their countries in order to prevent an outbreak, United States President Donald Trump has chosen to strike a balance. As the virus is expected to peak in the United States soon, Trump is attempting to avoid an economic meltdown while hoping to contain the virus. "Our country was not built to be shut down," the President announced on Monday. "We are going to be opening up our country for business because our country was meant to be open". "We are going to get it all going again very soon," he said. Additionally, he openly said that he was not looking at months, but only a few weeks. The United States recently recorded over 40,000 cases. 100 deaths were also witnessed, a first for the country since coronavirus reached the nation. Also read: New York state accounts for over 5% of global coronavirus cases, numbers expected to increase One of the members of Donald Trump’s coronavirus task force, Dr Deborah Birx claimed that the virus was spreading five times faster in New York than other states. The president has claimed that things are “bad”, but is sceptical about social distancing. "If it were up to the doctors, they may say let's keep it shut down, let's shut down the entire world", he claimed. The conflict has brought out the differing approaches that can be undertaken during a pandemic, which is to lock down the country to save lives, or to forego this in favour of protecting economic growth. CNN reported that the administration is considering limiting work to younger people, who are less prone to critical complications. In the face of potential unemployment, the administration is facing a dilemma. However, most states in the United States have imposed directed people to stay at home, with businesses closed, and schools shut. US President Donald Trump speaks during the daily briefing on the novel coronavirus, COVID-19, at the White House, March 23, 2020, in Washington, DC | AFP The US healthcare system is currently ill-equipped to deal with the influx of patients. The President insisted that “we can do two things at once”, implying that the country need not impose a lockdown and shut down the economy. However, global trends have made it abundantly clear that there is no middle ground in a situation like this. Countries can either shut their societies down to contain the virus, or work as usual and risk infection. The man at the helm of the president's task force: Dr Anthony Fauci, was nowhere to be seen alongside Trump. Instead, he attended meetings attacking the pandemic. Also read: Could United States become the next epicentre of COVID-19? With the number of coronavirus cases rising rapidly, the World Health Organization (WHO) has warned that the United States could become the next epicentre of the pandemic. “A very large acceleration” in the number of coronavirus cases has been recorded recently. Out of the new cases recorded in the last 24 hours, 85 per cent came from Europe and the United States. Out of these, 40 per cent cases alone came from the US. Recently, the president tweeted out and reaffirmed his faith in Americans to aptly deal with the virus. "Our people want to return to work," he said on Twitter. "They will practice Social Distancing and all else, and Seniors will be watched over protectively & lovingly. We can do two things together. THE CURE CANNOT BE WORSE (by far) THAN THE PROBLEM!" Also read: COVID-19: Spain virus death toll rises by 514 to 2,696 (With inputs from agencies)

'Cure can't be worse than problem', announces Trump as he vows to reopen US economy amid COVID-19 crisis

The Union Finance Minister Nirmala Sitharaman on Tuesday (March 24) said that last date for the income tax return for the financial year 18-19 has been extended to June 30, 2020. The finance minister also extended Aadhar-PAN linking date.

Indian Finance Minister extends deadlines to provide relief

Coronavirus has taken global markets, economies and the world by storm. Global financial markets are witnessing catastrophic bloodbath. Wall Street recorded two of its worst days since Black Monday in quick succession to trade close to 2018 December levels.&nbsp;

European stocks kissed 2012 levels and Indian markets are already trading near three-year lows. There is a huge fear in the market.&nbsp;

Dalal Street’s alchemist Shankar Sharma of First Global feels “Fear is fully justified. All economies are crumbling.&nbsp;

This is a level of distress hasn't been seen before”. &nbsp;We are having economic shutdown in shops, pubs, malls, travel, sporting events, movie shootings, factories you name it. In fact, all countries are shutting borders. The US has banned travel from Europe and the EU has also closed its borders. India has also followed the suit and entry from many countries has either been barred or restricted. All this is a precautionary measure to prevent the spread of the virus as much as possible. The situation in China has improved but now Europe has become the epicentre unexpectedly.&nbsp;

It is clear that Coronavirus is the reason behind fall in markets but let’s take a closer look at it.

Stock Markets are Forward Looking: Stock markets are considered forward-looking and they look at how things will unfold in future. Last year even when economic conditions were not great markets were trading up because they felt that things would improve in 2020 as geopolitical tensions like US-China trade war and Brexit would subside. At the onset of this year, those beliefs manifested when the US and China signed partial trade deal and UK officially left Europe. Even economic indicators had a tone of revival embedded in them. Investors felt that the economy has bottomed out and from here things will improve. At the same time central banks also provided massive liquidity and markets continued to hit a record high.

Just then, in this fragile global economic environment, which was just starting to improve, Coronavirus entered into environment. Initially, when it was in China it was expected that Beijing would be affected but not the whole world and at the max economic recovery would be delayed some time. Still, recovery was expected. However, as virus started spreading across the globe all hopes of recovery were dashed and fragile global economy which was just hoping to recover start falling even further to such an extent that various institutions have already now predicted a global recession.

Shaun Roache, Chief Asia Pacific Economist at S&amp;P Global says, “A recession across Asia-Pacific is now guaranteed due to a deep first-quarter shock in China and the shutdown of activities across G7 economies. Together with a loss of household and business confidence in these economies, will translate into severe and more persistent supply and demand shocks across the region. Unemployment rates will rise.” He also added that response by central banks may help but their effect will wane the longer the crisis lasts.

So forward-looking markets first corrected their hopes that economy will revive and then they reacted to new dynamic of global recession. Hence, the fall is so quick and sharp. At the same time, markets don’t like any kind of uncertainty and it is unclear how long Coronavirus will last. Investors are so uncertain about its total impact that they are even unable to model the markets properly (answer of this lies in the medical field and not economics). Therefore, they are taking their cash out by selling stocks and waiting for storm to settle before they invest again. Attraction for cash also explains sharp fall in gold, which is considered as safe heaven.

Geopolitical Tensions: Such situations can also bring out geopolitical tensions. As countries are closing their borders, restricting visas, containing exports of medical equipment so all this has the potential to further strain the relations between the countries. US and China are already engaged in war of words pertaining to virus outbreak. This is coming when protectionist feeling is already high. US-China only signed partial deal in January and EU-UK are still struggling over post Brexit negotiations. Not to forget that oil price war between Russia and Saudi will hamper their relations. At the same time this move will affect US Shale Gas industry so the US can also retaliate against it in number of ways. All this is adding another layer of uncertainty in the market.

Specific Industries Bearing Additional Hit: This is an economic situation where both demand and supply is getting affected. As various factories are being shut down due to preventive measures so there is massive disruption in supply chain. Operations of all the companies that are part of supply chain will take a hit hence their prices are taking a hit.

While it is also impacting the demand because the consumer has stopped spending on travelling, entertainment activities, eating out. This is impacting the business of airlines, automobiles, resorts, shipping industry to such an extent that there can be lot of bankruptcies in these industries. Therefore,&nbsp;individual stock of companies in these industries are also falling.

Since travel is severely affected so oil demand will take a hit and price war means markets will be flooded with oil supply due to which oil prices crashed. Various oil and gas companies in the US, as well as, other parts of the world can file for bankruptcies. So their share prices are also crashing.

So, broader market sell-off and industry-specific reasons are adding a further strain of stock prices of these industries.

While global banks are in a much better position than 2008 but if various companies will file for bankruptcies then bad debts will pile up and their position will weaken.

What's Next: Even though fear is currently high after a time markets will revive. So some experts feel it can be time to buy quality stock that will stand strong after dust will settle.

John Rutledge Chief Investment Officer at Safanad (Billion Dollar Asset Management Fund) says, “I expect the rest of 2020 to be very difficult but that we will see a strong rebound in 2021. For investors with cash, this is a tremendous opportunity to buy the best companies in the world at extreme discounts”

Central banks and governments are trying their best to cushion the impact. Fed reduced interest rates to zero, and the Bank of Japan is buying equities to control the blood. Governments are coming up with massive packages. Markets, however, are feeling that unless the virus is in complete control, economic activity will be disrupted and all these stimulus won’t be able to stimulate the economy effectively. Although, if governments can reassure that they will prevent bankruptcies by coming up with special schemes then markets can take a breath. While strong collaborated action by G7 or more countries can remove the veil of uncertainty and geopolitical tensions. If that happens that will also be a huge relief for the market.

Recession is here. But if things in other parts of the world progressed as they did in China then recession can be short-lived and there can be V-shaped recovery possibly by the end of the year. However, if the virus outbreak took different trajectory than in China then all bets are off. 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

Coronavirus has taken global markets, economies and the world by storm. Global financial markets are witnessing catastrophic bloodbath. Wall Street recorded two of its worst days since Black Monday in quick succession to trade close to 2018 December levels.

Coronavirus has taken global markets, economies and the world by storm. Global financial markets are witnessing catastrophic bloodbath. Wall Street recorded two of its worst days since Black Monday in quick succession to trade close to 2018 December levels. European stocks kissed 2012 levels and Indian markets are already trading near three-year lows. There is a huge fear in the market. Dalal Street’s alchemist Shankar Sharma of First Global feels “Fear is fully justified. All economies are crumbling. This is a level of distress hasn't been seen before”. We are having economic shutdown in shops, pubs, malls, travel, sporting events, movie shootings, factories you name it. In fact, all countries are shutting borders. The US has banned travel from Europe and the EU has also closed its borders. India has also followed the suit and entry from many countries has either been barred or restricted. All this is a precautionary measure to prevent the spread of the virus as much as possible. The situation in China has improved but now Europe has become the epicentre unexpectedly. It is clear that Coronavirus is the reason behind fall in markets but let’s take a closer look at it. Stock Markets are Forward Looking: Stock markets are considered forward-looking and they look at how things will unfold in future. Last year even when economic conditions were not great markets were trading up because they felt that things would improve in 2020 as geopolitical tensions like US-China trade war and Brexit would subside. At the onset of this year, those beliefs manifested when the US and China signed partial trade deal and UK officially left Europe. Even economic indicators had a tone of revival embedded in them. Investors felt that the economy has bottomed out and from here things will improve. At the same time central banks also provided massive liquidity and markets continued to hit a record high. Just then, in this fragile global economic environment, which was just starting to improve, Coronavirus entered into environment. Initially, when it was in China it was expected that Beijing would be affected but not the whole world and at the max economic recovery would be delayed some time. Still, recovery was expected. However, as virus started spreading across the globe all hopes of recovery were dashed and fragile global economy which was just hoping to recover start falling even further to such an extent that various institutions have already now predicted a global recession. Shaun Roache, Chief Asia Pacific Economist at S&P Global says, “A recession across Asia-Pacific is now guaranteed due to a deep first-quarter shock in China and the shutdown of activities across G7 economies. Together with a loss of household and business confidence in these economies, will translate into severe and more persistent supply and demand shocks across the region. Unemployment rates will rise.” He also added that response by central banks may help but their effect will wane the longer the crisis lasts. So forward-looking markets first corrected their hopes that economy will revive and then they reacted to new dynamic of global recession. Hence, the fall is so quick and sharp. At the same time, markets don’t like any kind of uncertainty and it is unclear how long Coronavirus will last. Investors are so uncertain about its total impact that they are even unable to model the markets properly (answer of this lies in the medical field and not economics). Therefore, they are taking their cash out by selling stocks and waiting for storm to settle before they invest again. Attraction for cash also explains sharp fall in gold, which is considered as safe heaven. Geopolitical Tensions: Such situations can also bring out geopolitical tensions. As countries are closing their borders, restricting visas, containing exports of medical equipment so all this has the potential to further strain the relations between the countries. US and China are already engaged in war of words pertaining to virus outbreak. This is coming when protectionist feeling is already high. US-China only signed partial deal in January and EU-UK are still struggling over post Brexit negotiations. Not to forget that oil price war between Russia and Saudi will hamper their relations. At the same time this move will affect US Shale Gas industry so the US can also retaliate against it in number of ways. All this is adding another layer of uncertainty in the market. Specific Industries Bearing Additional Hit: This is an economic situation where both demand and supply is getting affected. As various factories are being shut down due to preventive measures so there is massive disruption in supply chain. Operations of all the companies that are part of supply chain will take a hit hence their prices are taking a hit. While it is also impacting the demand because the consumer has stopped spending on travelling, entertainment activities, eating out. This is impacting the business of airlines, automobiles, resorts, shipping industry to such an extent that there can be lot of bankruptcies in these industries. Therefore, individual stock of companies in these industries are also falling. Since travel is severely affected so oil demand will take a hit and price war means markets will be flooded with oil supply due to which oil prices crashed. Various oil and gas companies in the US, as well as, other parts of the world can file for bankruptcies. So their share prices are also crashing. So, broader market sell-off and industry-specific reasons are adding a further strain of stock prices of these industries. While global banks are in a much better position than 2008 but if various companies will file for bankruptcies then bad debts will pile up and their position will weaken. What's Next: Even though fear is currently high after a time markets will revive. So some experts feel it can be time to buy quality stock that will stand strong after dust will settle. John Rutledge Chief Investment Officer at Safanad (Billion Dollar Asset Management Fund) says, “I expect the rest of 2020 to be very difficult but that we will see a strong rebound in 2021. For investors with cash, this is a tremendous opportunity to buy the best companies in the world at extreme discounts” Central banks and governments are trying their best to cushion the impact. Fed reduced interest rates to zero, and the Bank of Japan is buying equities to control the blood. Governments are coming up with massive packages. Markets, however, are feeling that unless the virus is in complete control, economic activity will be disrupted and all these stimulus won’t be able to stimulate the economy effectively. Although, if governments can reassure that they will prevent bankruptcies by coming up with special schemes then markets can take a breath. While strong collaborated action by G7 or more countries can remove the veil of uncertainty and geopolitical tensions. If that happens that will also be a huge relief for the market. Recession is here. But if things in other parts of the world progressed as they did in China then recession can be short-lived and there can be V-shaped recovery possibly by the end of the year. However, if the virus outbreak took different trajectory than in China then all bets are off. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

How coronavirus made markets sea of red

The US federal reserve took an initiative to face the economic crisis due to Covid-19. This is the second emergency fed rate cut in two weeks. US President Donald Trump welcomed this move

WION Dispatch: Second Emergency fed rate cut

With seven new cases, the number of infections in Sri Lanka has spiked to 19. As a precautionary measure, Srilankan airlines have asked passengers to carry their own blankets and headphones.

<a href="https://www.wionews.com/south-asia/covid-19-infects-over-94-in-pakistan-286802">Also read: Covid-19 infects over 94 in Pakistan</a> 
 
The situation is particularly bad in Afghanistan which has a weak healthcare system. Though the country has reported 21 cases so far.

But the number of infections could be much higher. Afghan lawmakers have said that more than 15 thousand people, still return from Iran every day.

In fact, so far 10, Afghans have died of coronavirus in Iran due to the lack of medical care.

Lawmakers said that the conflict-hit country lacked the proper equipment to detect coronavirus infections. In fact, they said Afghanistan has just 16 doctors who can diagnose Covid-19 in the virus epicentre of the Herat province.

In fact, there were even calls to shut down the parliament over fears of virus spread.

The number of cases in Pakistan has risen to 93. 41 new coronavirus infections were confirmed in the Sindh province.&nbsp;

The financial hub of Karachi which is also Sindh's capital remains worst hit with 25 cases.

But the Imran Khan government's priority still remains misplaced.

This as Pakistan president Arif Alvi is leaving for a two-day trip to china to show solidarity with its all-weather friend.

Remember, Pakistan has refused to evacuate its citizens from china even as the outbreak worsened. Afghanistan struggles to contain the outbreak.

Afghanistan struggles to contain outbreak

At least 15,000 Afghans return daily from Iran 
10 Afghans died due to lack of medical care in Iran 
Afghanistan lacks equipment for coronavirus testing 
Only 16 doctors can diagnose Covid-19 in Herat province

With seven new cases, the number of infections in Sri Lanka has spiked to 19. As a precautionary measure, Srilankan airlines have asked passengers to carry their own blankets and headphones.

With seven new cases, the number of infections in Sri Lanka has spiked to 19. As a precautionary measure, Srilankan airlines have asked passengers to carry their own blankets and headphones. Also read: Covid-19 infects over 94 in Pakistan The situation is particularly bad in Afghanistan which has a weak healthcare system. Though the country has reported 21 cases so far. But the number of infections could be much higher. Afghan lawmakers have said that more than 15 thousand people, still return from Iran every day. In fact, so far 10, Afghans have died of coronavirus in Iran due to the lack of medical care. Lawmakers said that the conflict-hit country lacked the proper equipment to detect coronavirus infections. In fact, they said Afghanistan has just 16 doctors who can diagnose Covid-19 in the virus epicentre of the Herat province. In fact, there were even calls to shut down the parliament over fears of virus spread. The number of cases in Pakistan has risen to 93. 41 new coronavirus infections were confirmed in the Sindh province. The financial hub of Karachi which is also Sindh's capital remains worst hit with 25 cases. But the Imran Khan government's priority still remains misplaced. This as Pakistan president Arif Alvi is leaving for a two-day trip to china to show solidarity with its all-weather friend. Remember, Pakistan has refused to evacuate its citizens from china even as the outbreak worsened. Afghanistan struggles to contain the outbreak. Afghanistan struggles to contain outbreak At least 15,000 Afghans return daily from Iran 10 Afghans died due to lack of medical care in Iran Afghanistan lacks equipment for coronavirus testing Only 16 doctors can diagnose Covid-19 in Herat province

Poverty, population and weak healthcare: Coronavirus cases on the rise in South Asia

The international travel industry is facing a widespread shutdown owing to coronavirus fears.

Many airlines have announced a reduction in flights as countries are continuing to impose travel bans and isolation requirements.

The International Air Transport Association has said that the revenue losses due to coronavirus could run as high as 113 billion dollars across the industry this year.

Also read:&nbsp;<a href="http://13.235.153.162/world/us-federal-reserve-announces-emergency-measures-amid-coronavirus-triggered-slowdown-286811" hreflang="en">US Federal Reserve announces emergency measures amid coronavirus-triggered slowdown</a>

Global aviation consultancy firm Centre for Aviation (CAPA) has said that most of the airlines in the world will be bankrupt by the end of May in the absence of a coordinated government and industry action beginning now.

British airline Flybe has become the first aviation company to go bankrupt due to the outbreak. All its flights have been grounded and passengers have been warned not to even try going to the airport unless they have flights lined up with another airline.

The second-biggest airline in the world, American Airlines has announced that it would start implementing a phased suspension of nearly all-long haul international flights. 
 
United Airlines has become the first US carrier to heavily slash its domestic routes. United carried one million fewer passengers in the first two weeks of March compared to a year ago.

Also read:&nbsp;<a href="http://13.235.153.162/opinions-blogs/explained-coronavirus-outbreak-how-india-will-take-time-to-get-used-to-social-distancing-286803" hreflang="en">Explained: Coronavirus outbreak - how India will take time to get used to social distancing</a>

Cathay Pacific has put nearly 25 thousand staff members on unpaid leave after announcing that it is expecting “substantial” losses in the first half of 2020

Norwegian Air has cancelled four thousand flights and temporarily laid off about half of its staff. The airline is already in serious financial difficulty due to the Boeing 737 max groundings.

The Dutch subsidiary of Air France-KLM is planning to slash up to two thousand jobs and to cut working hours by one-third for its entire staff.

Malaysian Airlines is also at risk of going bankrupt. The air carrier has urged employees to take voluntary unpaid leave programmes, and has further announced a 10 per cent pay cut for its senior management. Up to more than two thousand Malaysian Airlines flights have been cancelled due to the travel restrictions imposed by countries within its network.

Also read:&nbsp;<a href="http://13.235.153.162/world/precaution-not-panic-here-are-narratives-of-people-who-have-successfully-recovered-from-covid-19-286789" hreflang="en">Precaution, not panic: Here are narratives of people who have successfully recovered from Covid-19</a>

India's largest airline carrier IndiGo claims that it has witnessed a decline of 15-20 per cent in daily booking numbers over the last few days. To make flying during the pandemic easier, the airline has also announced waiving of rescheduling charges on flight bookings till March 31.&nbsp;

The international travel industry is facing a widespread shutdown owing to coronavirus fears. Many airlines have announced a reduction in flights as countries are continuing to impose travel bans and isolation requirements.

The international travel industry is facing a widespread shutdown owing to coronavirus fears. Many airlines have announced a reduction in flights as countries are continuing to impose travel bans and isolation requirements. The International Air Transport Association has said that the revenue losses due to coronavirus could run as high as 113 billion dollars across the industry this year. Also read: US Federal Reserve announces emergency measures amid coronavirus-triggered slowdown Global aviation consultancy firm Centre for Aviation (CAPA) has said that most of the airlines in the world will be bankrupt by the end of May in the absence of a coordinated government and industry action beginning now. British airline Flybe has become the first aviation company to go bankrupt due to the outbreak. All its flights have been grounded and passengers have been warned not to even try going to the airport unless they have flights lined up with another airline. The second-biggest airline in the world, American Airlines has announced that it would start implementing a phased suspension of nearly all-long haul international flights. United Airlines has become the first US carrier to heavily slash its domestic routes. United carried one million fewer passengers in the first two weeks of March compared to a year ago. Also read: Explained: Coronavirus outbreak - how India will take time to get used to social distancing Cathay Pacific has put nearly 25 thousand staff members on unpaid leave after announcing that it is expecting “substantial” losses in the first half of 2020 Norwegian Air has cancelled four thousand flights and temporarily laid off about half of its staff. The airline is already in serious financial difficulty due to the Boeing 737 max groundings. The Dutch subsidiary of Air France-KLM is planning to slash up to two thousand jobs and to cut working hours by one-third for its entire staff. Malaysian Airlines is also at risk of going bankrupt. The air carrier has urged employees to take voluntary unpaid leave programmes, and has further announced a 10 per cent pay cut for its senior management. Up to more than two thousand Malaysian Airlines flights have been cancelled due to the travel restrictions imposed by countries within its network. Also read: Precaution, not panic: Here are narratives of people who have successfully recovered from Covid-19 India's largest airline carrier IndiGo claims that it has witnessed a decline of 15-20 per cent in daily booking numbers over the last few days. To make flying during the pandemic easier, the airline has also announced waiving of rescheduling charges on flight bookings till March 31.

Will the global aviation industry survive coronavirus-related slowdown?

The Russian government said Monday it would unlock $4 billion to help the economy with the coronavirus pandemic and urged businesses to help slow the spread of the virus.

Reserves of 300 billion rubles ($4 billion) "can be used by the government within the framework of this year's budget to cover top priority needs when it comes to expenses and support of industries and citizens," Prime Minister Mikhail Mishustin said at a government meeting.

Also read: <a href="https://www.wionews.com/world/vladimir-putin-signs-russias-constitutional-reform-law-286399">Vladimir Putin signs Russia's constitutional reform law</a>

Mishustin said the authorities should help in particular companies in trade, tourism and aviation, and announced that the government would expand lending offers to small- and medium-sized enterprises.

Mishustin called on Russian businesses particularly large corporations to take steps to halt the spread of the coronavirus and asked for solutions to help the government.

Also see: <a href="https://www.wionews.com/business-economy/oil-prices-slide-again-on-coronavirus-fears-price-war-286661">Oil prices slide again on coronavirus fears, price war</a>

"The fight against the pandemic is a task not only for state structures but for all of society," he said.

The prime minister also urged every Russian "to help and take care of each other".

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Mishustin praised the preventative measures his government has taken so far and pledged transparency with future steps.

"We should do everything so that the situation does not develop like it is developing in other countries," Mishustin said.

Also read: <a href="https://www.wionews.com/world/us-steps-up-coronavirus-response-announces-rate-cut-shutdowns-and-curfews-286589">US steps up coronavirus response, announces rate cut, shutdowns and curfews</a>

He also said Russia was closing its border with Belarus, a close political and economic ally.

Last week the Russian government announced measures to support the tumbling ruble amid falling oil prices after OPEC and Moscow failed to agree a deal to reduce output and Saudi Arabia launched an all-out price war.

The Russian government said Monday it would unlock $4 billion to help the economy with the coronavirus pandemic and urged businesses to help slow the spread of the virus.

The Russian government said Monday it would unlock $4 billion to help the economy with the coronavirus pandemic and urged businesses to help slow the spread of the virus. Reserves of 300 billion rubles ($4 billion) "can be used by the government within the framework of this year's budget to cover top priority needs when it comes to expenses and support of industries and citizens," Prime Minister Mikhail Mishustin said at a government meeting. Also read: Vladimir Putin signs Russia's constitutional reform law Mishustin said the authorities should help in particular companies in trade, tourism and aviation, and announced that the government would expand lending offers to small- and medium-sized enterprises. Mishustin called on Russian businesses particularly large corporations to take steps to halt the spread of the coronavirus and asked for solutions to help the government. Also see: Oil prices slide again on coronavirus fears, price war "The fight against the pandemic is a task not only for state structures but for all of society," he said. The prime minister also urged every Russian "to help and take care of each other". × Mishustin praised the preventative measures his government has taken so far and pledged transparency with future steps. "We should do everything so that the situation does not develop like it is developing in other countries," Mishustin said. Also read: US steps up coronavirus response, announces rate cut, shutdowns and curfews He also said Russia was closing its border with Belarus, a close political and economic ally. Last week the Russian government announced measures to support the tumbling ruble amid falling oil prices after OPEC and Moscow failed to agree a deal to reduce output and Saudi Arabia launched an all-out price war.

Russian authorities curate rescue plan for businesses amid covid-19 pandemic

Ranks of tourist buses idle under a burning sun while once-bustling theme parks lie empty from above, striking images reveal the hollowing out of Thai tourism due to the effect of the new coronavirus.

Chinese tourists 10 million of whom were expected to visit this year have abandoned Thailand, staying at home as a health crisis sweeps the globe, or under quarantine by their government.

The attractions around Pattaya, a Thai tourist resort close to Bangkok which for several years has made its money from mainland tour groups, are struggling for survival.

Also read:&nbsp;<a href="https://www.wionews.com/world/china-reports-27-new-virus-deaths-lowest-rise-in-cases-since-january-284962">China reports 27 new virus deaths, lowest rise in cases since January</a>

Beaches are quiet and shopping malls deserted as an economic malaise settles over a kingdom heavily dependent on tourist spending.

"The situation is very bad, there are very few tourists left," said Songsak Srimuang, a 27-year-old tattoo shop manager.&nbsp;

"Maybe I'll go back to my hometown and go back to farming."

Also read:<a href="https://www.wionews.com/world/global-growth-to-fall-below-last-years-level-due-to-coronavirus-imf-284325">&nbsp;Global growth to fall below last year's level due to coronavirus: IMF</a>

Pattaya, like the capital Bangkok, is fuelled by migrant labour from poorer Thai provinces as well as neighbouring countries.&nbsp;

Economic growth is forecast to shrink to as low as two per cent this year.

As tourism is eviscerated by the virus, Thais in spin-off industries fear the worst.

Also see:&nbsp;<a href="https://www.wionews.com/opinions-blogs/how-this-economic-slowdown-is-different-from-the-previous-ones-283955">How this economic slowdown is different from the previous ones</a>

"I make 1000 baht a day, it's not enough to earn a living," Pattaya ice-cream seller Rasmee Thapa, 28, told the sources.

Hotels and shops are shutting down, while those that stay open rely on Western ex-pats and Russian tourists who are still holidaying.

"Usually there are many tour buses but now it's nothing," said waitress Kochawan Greeglang, 30.

"If this keeps... the bar will have to close down and I won’t have anywhere else to work."

Thailand has confirmed 50 cases of the virus, with one death. &nbsp;

Ranks of tourist buses idle under a burning sun while once-bustling theme parks lie empty from above, striking images reveal the hollowing out of Thai tourism due to the effect of the new coronavirus.

Ranks of tourist buses idle under a burning sun while once-bustling theme parks lie empty from above, striking images reveal the hollowing out of Thai tourism due to the effect of the new coronavirus. Chinese tourists 10 million of whom were expected to visit this year have abandoned Thailand, staying at home as a health crisis sweeps the globe, or under quarantine by their government. The attractions around Pattaya, a Thai tourist resort close to Bangkok which for several years has made its money from mainland tour groups, are struggling for survival. Also read: China reports 27 new virus deaths, lowest rise in cases since January Beaches are quiet and shopping malls deserted as an economic malaise settles over a kingdom heavily dependent on tourist spending. "The situation is very bad, there are very few tourists left," said Songsak Srimuang, a 27-year-old tattoo shop manager. "Maybe I'll go back to my hometown and go back to farming." Also read: Global growth to fall below last year's level due to coronavirus: IMF Pattaya, like the capital Bangkok, is fuelled by migrant labour from poorer Thai provinces as well as neighbouring countries. Economic growth is forecast to shrink to as low as two per cent this year. As tourism is eviscerated by the virus, Thais in spin-off industries fear the worst. Also see: How this economic slowdown is different from the previous ones "I make 1000 baht a day, it's not enough to earn a living," Pattaya ice-cream seller Rasmee Thapa, 28, told the sources. Hotels and shops are shutting down, while those that stay open rely on Western ex-pats and Russian tourists who are still holidaying. "Usually there are many tour buses but now it's nothing," said waitress Kochawan Greeglang, 30. "If this keeps... the bar will have to close down and I won’t have anywhere else to work." Thailand has confirmed 50 cases of the virus, with one death.

Tour buses idle as Thai economy takes gut punch from virus

Financial markets and economic forecasts are warning of rising risks to the American and global economies, which were improving before novel coronaviruses spread from China around the world.

IMF cuts global growth forecast, Economic carnage of Coronavirus | Coronavirus Outbreak

The Wuhan Coronavirus outbreak is hitting China's belt and road initiative. Projects funded by China are stuck. Chinese workers are unable to return to work. This report has the details.

Gravitas: Wuhan Virus, China's belt and road projects grind to a halt

After the anti-government protest, the coronavirus outbreak has added to the troubles of Hong Kong. Government officials have announced that they will gift $1200 to all permanent residents, in an attempt to revive the economy. This report has the details.

Gravitas: Hong Kong to hand out $1200 to permanent residents

Chinese regions deemed at low risk from the coronavirus outbreak should fully resume normal activities and end transport bans, an official at the state planning agency said on Tuesday.

Chinese regions deemed at low risk from the coronavirus outbreak should fully resume normal activities and end transport bans, an official at the state planning agency said on Tuesday. China needed to take a more nuanced approach to control the epidemic to ensure the economic impact is minimised, Ou Xiaoli of the National Development and Reform Commission (NDRC) told a news briefing. "Low-risk areas ... are to restore order in production and life, cancel transport restrictions and help enterprises solve employment, raw material, funding, equipment and other difficulties," he said. Also Read: Hong Kongers set up face mask factory amid coronavirus panic buying "The current epidemic situation is not the same everywhere," he said, adding that if control measures were not tailored to circumstances in different places, it could hurt the economic recovery. The World Health Organization (WHO) has said the epidemic in China peaked between January 23 and February 2 and has been declining since. China on Tuesday reported a rise in new cases in Hubei province, the centre of the outbreak. But excluding those, China had just nine new infections on Monday, the lowest number since January 20. Watch: Coronavirus death toll surges to 2, 469 Ou said counties apart from Beijing and Hubei would be divided into "low-risk", "medium-risk" and "high-risk" and draw up their production recovery plans accordingly. Low-risk areas should "completely restore work and life procedures", end all restrictions on transportation and help enterprises resolve funding and raw material problems, he said. China's leaders have been urging regions outside the major infection zone of Hubei to do their utmost to restore the economy, and many have in recent days downgraded their emergency response measures after reporting no new cases. Also Read: Virus-hit China set to postpone parliament for first time in decades President Xi Jinping said on Sunday the economy would take a big hit and low-risk provinces should focus on going back to work and restoring production. But high-risk areas should continue to focus on controlling the epidemic, he said. Hubei backtracked on Monday after saying it would relax restrictions and allow healthy people to leave the province. It said the notice had been issued without authorisation and controls would remain in place. Ou said high-risk areas must maintain "strict controls" and gradually restore economic output only after the epidemic has been effectively curbed. At the same time, they should ensure that firms in essential sectors continue to function normally, he said. He Qinghua of the National Health Commission told the briefing entry-exit controls at residential compounds and tourist areas should remain in place in high-risk zones, and public gatherings still need to be restricted.

Low-risk Chinese regions must resume activity: State Planning Agency

Bharatiya Janata Party President JP Nadda on Sunday said that the Indian economy, now standing at $2.94 trillion, is steadily moving forward towards $5 trillion, under the leadership of Prime Minister Narendra Modi.

"India is now the 5th largest economy in the world with a GDP of $2.94 Trillion. Under the visionary leadership of PM Narendra Modi Ji, the country is moving steadily towards $5 trillion economy goal. This is the impact of the progressive economic schemes and measures of the govt," Nadda's tweet read.

Giving credit to the Centre, the BJP chief further said that the country has seen tremendous growth in all sectors due to the "visionary steps and futuristic budget."

"India has shown tremendous growth in all sectors, with a rise in purchasing power parity, reflecting the positive impact of visionary steps and futuristic budget of the government," his second tweet read.

&nbsp;

Bharatiya Janata Party President JP Nadda on Sunday said that the Indian economy, now standing at $2.94 trillion, is steadily moving forward towards $5 trillion, under the leadership of Prime Minister Narendra Modi.

Bharatiya Janata Party President JP Nadda on Sunday said that the Indian economy, now standing at $2.94 trillion, is steadily moving forward towards $5 trillion, under the leadership of Prime Minister Narendra Modi. "India is now the 5th largest economy in the world with a GDP of $2.94 Trillion. Under the visionary leadership of PM Narendra Modi Ji, the country is moving steadily towards $5 trillion economy goal. This is the impact of the progressive economic schemes and measures of the govt," Nadda's tweet read. Giving credit to the Centre, the BJP chief further said that the country has seen tremendous growth in all sectors due to the "visionary steps and futuristic budget." "India has shown tremendous growth in all sectors, with a rise in purchasing power parity, reflecting the positive impact of visionary steps and futuristic budget of the government," his second tweet read.

India moving steadily towards $5 trillion economy goal: JP Nadda

US Secretary of State Mike Pompeo arrived in Saudi Arabia on Wednesday to discuss regional security, namely Iran, after the US killing last month of a top Iranian general pushed the oil-producing region closer to an all-out war.

In meetings with King Salman and Crown Prince Mohammed bin Salman over the next two days, Pompeo will also raise economic and human rights issues like the case of a Saudi-American physician who remains on trial after nearly two years in detention, he told reporters traveling with him.

Saudi Arabia has backed the Trump administration's efforts to counter Iran but cautioned against military action after a series of strikes last year damaged its oil facilities. Riyadh blamed the attacks on Tehran, which denies responsibility.

The United States and Iran backed off from intensified conflict last month after a US air strike in Iraq killed Qassem Soleimani and Tehran retaliated with missile strikes on US&nbsp;bases that injured more than 100 troops.

"We are not rushed, the pressure campaign continues. It's not just an economic pressure campaign... It's isolation through diplomacy as well," Pompeo said before his flight to Riyadh.

"(In Riyadh) we'll spend a lot of time talking about the security issues -- the threats from Islamic Republic of Iran in particular, but we'll talk about a broad range of things."

Saudi Arabia has come in for intense criticism from Western governments and the US Congress over its devastating five-year war in Yemen as well as the detention of prominent women activists and the killing of journalist Jamal Khashoggi in the kingdom's Istanbul embassy in 2018.

Five Democratic senators, the chairman of the House foreign affairs committee and the Republican ranking member have urged Pompeo to press for a resolution to the court case of dual national Walid Fitaihi, who was arrested in 2017 under an anti-corruption campaign, and lift travel bans on his family.

Pompeo's trip comes three weeks after President Donald Trump unveiled his long-awaited Middle East peace plan, which the Palestinians rejected outright.

Saudi Arabia expressed support for direct peace negotiations under US auspices while reiterating unwavering commitment to the Palestinian cause.

US Secretary of State Mike Pompeo arrived in Saudi Arabia on Wednesday to discuss regional security, namely Iran, after the US killing last month of a top Iranian general pushed the oil-producing region closer to an all-out war.

US Secretary of State Mike Pompeo arrived in Saudi Arabia on Wednesday to discuss regional security, namely Iran, after the US killing last month of a top Iranian general pushed the oil-producing region closer to an all-out war. In meetings with King Salman and Crown Prince Mohammed bin Salman over the next two days, Pompeo will also raise economic and human rights issues like the case of a Saudi-American physician who remains on trial after nearly two years in detention, he told reporters traveling with him. Saudi Arabia has backed the Trump administration's efforts to counter Iran but cautioned against military action after a series of strikes last year damaged its oil facilities. Riyadh blamed the attacks on Tehran, which denies responsibility. The United States and Iran backed off from intensified conflict last month after a US air strike in Iraq killed Qassem Soleimani and Tehran retaliated with missile strikes on US bases that injured more than 100 troops. "We are not rushed, the pressure campaign continues. It's not just an economic pressure campaign... It's isolation through diplomacy as well," Pompeo said before his flight to Riyadh. "(In Riyadh) we'll spend a lot of time talking about the security issues -- the threats from Islamic Republic of Iran in particular, but we'll talk about a broad range of things." Saudi Arabia has come in for intense criticism from Western governments and the US Congress over its devastating five-year war in Yemen as well as the detention of prominent women activists and the killing of journalist Jamal Khashoggi in the kingdom's Istanbul embassy in 2018. Five Democratic senators, the chairman of the House foreign affairs committee and the Republican ranking member have urged Pompeo to press for a resolution to the court case of dual national Walid Fitaihi, who was arrested in 2017 under an anti-corruption campaign, and lift travel bans on his family. Pompeo's trip comes three weeks after President Donald Trump unveiled his long-awaited Middle East peace plan, which the Palestinians rejected outright. Saudi Arabia expressed support for direct peace negotiations under US auspices while reiterating unwavering commitment to the Palestinian cause.

Mike Pompeo in Saudi Arabia to talk Iran, economy and human rights

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