economists peter paul think that he believes we can avoid a global recession despite the global breech of the coronavirus. i'm going to school and let's do business. it can all be traced back here. a city of 11000000 in central china and the at the center of the new strain of corona virus disrupting global commerce now province of who says it's starting to go back to work after a lengthy lock down if true it could be a positive signal to the rest of the world there's reason to believe things want to mediately go back to normal. carmakers are already signaling a return japanese firm honda saying it will restart work on its will han factory on wednesday rival nissan saying it's partially restarting 2 plants in the surrounding who pay province china is eager to show that industry is getting back on its feet it's routinely releasing videos like these showing factories in full swing but many businesses and especially larger manufacturers are operating under reduced capacity

they lack workers many of whom haven't made it back from the lunar new year holidays due to travel restrictions and distribution of goods also remains a problem due to transport and flight restrictions. and even as infection rates steady there are questions of whether the worst is over or if the disease isn't yet done with china. there are still many cases and who by province and move on and control is arduous spread of the disease overseas adds uncertainty. uncertainty it's still the key word as china tries to reboot its industry in a global economy. washington stimulus plan to combat a potential buyers related economic crisis is meeting bipartisan resistance after a closed door meeting yesterday president must now consider how to sweeten the deal that will convince not only republicans and democrats to sign up but also calm world markets. president donald trump's plan to shield the economy from the

coronavirus includes payroll tax cuts how much and for how long that's still being negotiated among u.s. lawmakers u.s. officials say in addition to payroll cuts they are hoping to pass assistance for our early workers we are trying to we will use assistance to unpaid. sick leave people very important point also small and medium businesses point and also possibly. to some distressed industries or sectors in the economy maybe tax deferral might be a useful tool and other means across the atlantic governments are making similar moves to stabilize local economies in germany many companies also fear fewer orders and supply chain disruption will mean layoffs the government has introduced a law that in such cases we will still be paid by the state but it's bracing for a turn for the worse. than we are expecting negative effects from the supply chains

especially in the industrial and commercial sectors which we only see the full extent in the coming weeks. at a press conference german chancellor angela merkel said her government will do all it takes to ease the fallout from the outbreak that could include easing germany's strict rules and increasing public spending. to chelsea delaney of frankfurt correspondent how that german government response go down on the trading floor. traders have had a pretty mixed reaction to this it's obviously good to have merkel finally addressing the public after kind of being on the sidelines for the majority of this crisis and some of the things she said were a little bit concerning to traders including the statement that about 70 percent of people could get the virus. but the a lot of the other things she said were kind of what investors had been in hoping for over the past couple of weeks 1st that germany will do whatever it takes to

combat the economic slowdown and then also that they could have some flexibility on their 0 debt blocks the euro debt rule so i think that that was what investors wanted to hear but i think there's still a lot of skepticism just because what the german government has proposed so far to combat the crisis in the economic slowdown really by most economic measures that is not going to be sufficient a lot of economists are saying so i think a lot of investors just want to want to actually see steps being taken italy is worst in europe how is it going coming markets we could speak spending plan. well earlier today italy to come out and say they are prepared to spend about $25000000000.00 euros to combat economic slowdown that would include things like small businesses and cutting mortgages for businesses and consumers but i think what we're seeing today is just

a lot of skepticism among investors who have been waiting for a really long time to see stimulus measures announced and now that we're seeing them there is disappointment not just with germany with italy but also with the u.s. and. the bank of england has also cut interest rates today and announced a really big 30000000000 dollar stimulus package and that really hasn't called markets either so if you let me thank you very much for the analysis. well michael again had fs talk to talk german economist peter bofinger about the business impact of the virus and our chances of avoiding a global recession. what's your impression our german business is currently dealing with a crisis well we have no data so far for march we have no data for february and the only thing we know is that the labor market so far has not been too much affected which is good news but it's obvious that it will have severe repercussions on production on services i think there's no doubt that we will face

a kind of recession in the 1st quarter and also in the 2nd quarter is the german government doing enough to protect the german economy german companies against this crisis john government is doing important things especially as far as short time burke is concerned i think they have no active aided measures that were a helpful in the trade financial crisis to prevent the crisis to spread to the labor market but we thing more has to be done and i think what's measures is really know the liquidity and the sort of and see of the in the pricing and for this purpose we have suggested that all takes payments that are due in the next few months will be suspended and only have to be paid then once the price is over and in addition we have asked for a program where companies can compensate the losses this year his profits last year so the think it baked texas so no stimulus. well that is stimulus i would

say if companies have really the opportunity to compensate the loss if the government is so to say participating in the losses that are made due to the crises i think as far stimulus is concerned the short term the problem is we cannot social consumption as. we call it because the concerns about health are north and not the priority. does this crisis have the potential to put push the world economy into a recession well we know from the o.e.c.d. that in less optimistic scenario global growth will go down from about 3 percent to 1.5 percent of this is very strong diesel aeration and i think that countries like italy the good dish will definitively facing a recession i think it all now depends on the decided miss preparedness of the governments to do what ever it is that it takes to say this to prevent the crisis

from spreading from those sectors who are mainly affected to the rest of the economy so to prevent that the crisis becomes really systemic proposing i thank you very much. some optimism they have but how are investors around the globe sizing things up or markets on wednesday mostly steady as they gain distance from monday's massive selloff and look toward government help asian stocks ended down the spontaneity rally it missed as one hopeful about stimulus signals from the u.s. but fears over the virus as economic impact proved too much to hang saying as you can see they're struggling stumbling over doubts about the territories stimulus in hong kong european markets struggle to hold on to early gains enough and trading the footsie was initially boosted by bank of england interest rate cut as we heard from chelsea but slipped into negative territory the dax was fairly flat the bottom line is that invest is looking for reassurance but remain uncertain about stopping

a global recession let's bring in correspondent andrea and to talk about this how confident are investors that things are getting back to normal in who bay which we mentioned earlier in the show the center of the virus and factories reopening today . well bill the band aid has just only been ripped off so still says it's early days it's very hard to tell how investors are really feeling about business coming back to big just to give you a status update $45.00 out of 76 cities will be province i must have been declared as no risk and some of the industries and some of the manufacturing sector some of those in the manufacturing sector rather i only starting to possibly come back to operations and that is also all dependent on government approval now it's still faces a potential so down because what's now worrying for investors as well as sectors

like the manufacturing sector is actually the rising numbers infections outside of china and that's a very concerning deal right there so that's going to contribute to a declining number. of orders the demand is going to slow down even more so i think it's going to be a bit of a tit for tat at the moment a great thing for us in singapore thank you very much thanks. now to some of the other business stories making global news oil prices are down again on news the united arab emirates is joining saudi arabia in what could become a stand off against russia saudi arabia announced yesterday it plans to grains oil production to bring prices down and force russia into agreeing to bars lead production cuts. toyota is setting its average pay rise for workers to 20 percent less than last year's hike that's to protect profits from the coronavirus a fix and a global economic slowdown toyota is considered a bellwether in japan meaning other japanese corporations could follow suit cathay

pacific says profits last year plummeted by 28 percent the most is a monthly related to months of protests and clashes with police in hong kong that disrupted travel across a virus is expected to deal another blow to cafes bottom line this year. and the coronavirus says german sporting judge added as the king was for way it expects sales to take a 1000000000 euro hit in the 1st quarter due to a slump in chinese demand most of a 3rd of its revenue comes from china added as shares slumped. last year in business with you.

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play . this is d.w. news wire from berlin up to 70 percent of people in germany will be infected with the coronavirus in her 1st comments on the outbreak chancellor angela merkel says the country must slow the spread of the disease to prevent the health system for being overwhelmed. also coming up joe biden strengthens his position as a front runner in the us democratic presidential race after winning big in a new round of primaries can he be to trump the last one candidate for the sanders is that the beginning of the act. or turning to the.