u.s. plans to combat the potential economic crisis meet bipartisan resistance. and we speak exclusively to one of germany's leading economists. he believes if we can avoid a global recession despite the global breech of the coronavirus. i mean facility 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 base 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 won't immediately go back to normal. carmakers are already signaling a return japanese firm honda saying it will restart work and its factory on wednesday rival nissan saying it's partially restarting 2 plants in the surrounding who bay 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 study 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. sickly people very important point also small and medium businesses point and also possibly. 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 debt rules and increasing public spending. it's are 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 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 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 and 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 it 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 did come out and say they are prepared to spend about $25000000000.00 euros 'd to combat the 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 $30000000000.00 stimulus package and that really hasn't called markets either so if you really think you very much for the analysis. my colleague and i had fs talk to top german economist peter bofinger about the business impact of the virus and our chances of avoiding a global recession. what's your impression of german businesses county 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 german government is doing important things especially as far as short time burke is concerned i think they have no exceeded measures that they're really helpful in the great 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 solvency of the enterprise sector 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 as profits last year so that they get baked texas so no stimulus but that is a stimulus but 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 not have enough 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 the less optimistic scenario global growth will go down from about 3 percent to 1.5 percent so this is a very strong diesel aeration and i think countries like italy which will

definitively facing a recession i think it all now depends on the decided in this preparedness of the governments to do what ever 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 approving of 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 spike nearly rally investors were hopeful about stimulus signals from the u.s. but fears over the viruses economic impact proved too much to hang saying as you can see they're struggling stumbling over doubts about the territories own stimulus in hong kong european markets struggle to hold on to the gains enough and trading 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 investors are looking for reassurance to remain uncertain about stopping a global recession let's bring in our singapore correspondent andrea hang 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 m.p.c. 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 big and just to give you a status update $45.00 out of $76.00 city will be province. 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 only starting to possibly come back to

operations and that is also all dependent on government approval now it's still faces a potential slowdown because what's not 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 now 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 of training 1st in singapore thank you very much. now for 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 branes 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 effects 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 a loss is a largely 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 looking was for way it expects sales to take a 1000000000 euro hit in the 1st quarter due to a slump in chinese to match most of a 3rd of its revenue comes from china added us shares slumped. last year in business with a. climate

neutrality 25th. energy pioneers aka pairing forest. green deal is attracting real money. from the city and the final seal team is just one way the climate killer can. when the messiah comes and replace crude oil. made in germany. in 30 minutes on t.w. . story there are people who hold over information provided to. the fans they want to express d.w.

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