organization labels the coronavirus a pandemic this is the one business show you can't afford to miss i'm going to bore and i'm sure i'm liking him. i can take down as much as 5 per cent in the us after that i'll be a total now that's what being done to ease the pain. and other factors taking up the market. plus we've discussed the breakdown of supply chain for the kind we now turn our attention to the pain being felt in europe we'll go in depth with expert analysis we have a packed job today so let's dive right in. and as corona virus continues to spread around the globe the world health organization has officially labeled it a pandemic. the. husband says seeing this outbreak around the cloak and we're deeply concerned by the a lot of mean levels of spread and see very easy and by the to mean the level of. action. we have that for

a man the system and the 19 can be contacted i used as a pundit make over the past 2 weeks the number of countries affected by the virus have tripled globally there have been more than 120000 cases with over 4300 deaths more than 67000 of those infected have fully recovered here in the united states there are now more than 1000 cases speaking in front of the u.s. house oversight reform committee the director of the u.s. national institute of allergy and infectious diseases said things are going to get worse. so i can say we will see more cases and things will get worse than they are right now how much worse we'll get will depend on our ability to do 2 things to contain the influx of people who are infected coming from the outside and the ability to contain and mitigate within our own country bottom line it's going to get worse. and meanwhile in europe german chancellor chancellor

angela merkel is concerned that up to 70 percent of the country's citizens could be in fact that. by then was months you have to understand that if the virus is there and the population has no immunity yet to this virus there are no vaccine and. that a high percentage experts say 60 to 70 percent of the population will be infected as long as this situation continues germany has had more than $1500.00 cases so far with 3 deaths in italy which is the most cases so far outside of china prime minister decepticon t.v. said while more restrictive measures are a possibility the freedom of the tell us is crucial. our primary objective and we all share this objective is to protect the health of the citizens because comparing this to the other constitutional matters the direct stake here this one is certainly the priority but let's keep in mind other interests play for example when we issue restrictive measures they impact the lives

of people we need to be aware that there are civil liberties social rights that could be imperative we need to keep in mind that there will be the freedom of enterprise that suffers and that is also a constitutional value we must take into account everything. what is now known as tuesday's dead bat bounce sparked by president trans emergency fiscal stimulus package faded quickly as yields on equities are tumbling once again wednesday as there is a lack of details in fiscal response the dow plunged more than 1500 points to end the day and all major indexes are now down more than 18 percent from all time highs in mid february and goldman sachs issued a note slashing its media as m p forecast by another 15 percent 80 percent of american companies are facing severe supply chain disruptions with lead times that have doubled the recent market volatility is unprecedented now in 2019 major indexes all average daily moves of less than one percent but now over the past 12

trading days the average change has been well above 3 percent causing tremendous damage to markets investor sentiment confidence and stability or oil continues to slide following another 3 percent as opec now sees a 94 percent drop in 2020 global oil demand growth in response to the coronavirus this demand shock is coming just as supplies peaking with saudi arabia increasing christians to asia and the u.a.e. getting ready to raise its output capacity as this continues bloomberg notes that was soon trade premium to brant shale alpert's come under threat of default the trump and missed. it is now quote strongly considering a bailout package for the u.s. oil and natural gas companies in the form of low interest government loans the proposal was strongly criticized for propping up fossil fuel companies at the same time the clean energy bill seems to be unraveling meanwhile the u.k.'s fleshing out the details of their own fiscal stimulus and supporting the markets with

a definable game plan the bank of england cut its benchmark rate by 50 bits to a quarter of a percent and announce that the government will spend billions of pounds in an effort to limit the impact of the coronavirus on the economy now specifically $7000000000.00 pounds will be available to support the labor market and an additional $5000000000.00 will go to health care the total fiscal stimulus plan a $30000000000.00 pounds is now the largest budget giveaway since 1902 and should be significant towards mitigating the economic hit in the short term so in comparison european markets only fell around one percent versus the us which is now down more than 5 percent wednesday. so for more on this we're now joined by professor richard wolffe the host of the economic update so richard let's start off here there are a couple things at play obviously the 1st is the coronavirus which is responsible for the huge demand shock to the system but then we have the breakdown of opec leading to the collapse of oil prices and then in hindsight the trade dispute with china that we had last year now seems to be small potatoes so what now is the most

worrying to you and do you see these events coming together to create the perfect storm that will cause irrecoverable damages to our capital market. i think i would pick the latter i mean this is a sad situation and it's tragic in what it is what it means but i always look at it historically capitalism is a system as i have said on this program before that wherever it has landed over the last 300 years on average every 4 to 7 years there's an economic downturn some are short and shallow some a long and deep but that's the average the letters from we had more than there's going to. 2008 and 9 that's more than 4 to 7 years which means if you understand history and you understand that this has been true without exception for 300 years then you knew something was going to come down and it was going to come down hard because it's gone up for so on the usually long whether it's the virus or the oil

shock or the trade war with china or anything else is a secondary matter to the fact that our economic system is extremely fragile we could have and should have done something about that had we done so we would have been able to handle this crisis the way we handled the sars virus a very similar virus a few years ago ebola or several other things like this it's important not to get lost on the specific thing that causes the crisis but rather to see the social totality that is so vulnerable to give us the craziness we see now. and professor wolf now it seems that monetary policy has been deemed completely ineffective to help stem the markets the way we see things so we now must turn to fiscal policy but even that seems to be not enough right now to bring confidence back into this market and not only is there a lack of details which is already making the markets suspicious but there is

a lack of confidence that anything can be done at this point to turn the boat around what do you think are are we at the point of no return i mean i understand what you're saying here previously which is we've built this upon ourselves by continually propping things up but at this point we can't really let them fail can we. know we have to try to do something but we've not only not taken that action we've lost the capacity to organize an economic system to solve a social problem our system is based on profit on profit for individual enterprises grouped together sometimes in complexes. like the military industrial or the medical industrial but both basically we put between the people who needed and the resources we have which are adequate we put this system that focuses everybody on the so-called bottom line once you have a system that does that when you're confronted with

a social problem like the coronavirus or like a country's dependence on oil you find that the system is your biggest problem because it doesn't allow you to mobilize the resources you have to deal with the social problems you have an economy has to focus on the social problems notice that the representative you add on said we want to focus on the medical issue that's priority ok if that's really true then you have to suspend the profit game for president trump to go up and say i'm going to cut the payroll tax come on people are not going to the mall the not going to stores and not going to colleges because they're afraid for their life you put a few more bucks in their pocket they're not going to suddenly go and spend money i mean it's irrational but that kind of thinking is the convention in a profit driven system and that's the problem. now let's turn over to the oil

markets now that is also contributing significantly to the volatility in the u.s. yet at markets right now and right now a huge portion of the high yield bonds in america are issued by energy companies that are highly highly leveraged so if we start to see a wave of bankruptcies come through what kind of knock on effects to expect to see and are there any systemic risks that we should be paying attention to. let me answer the last part yes this is a make risks the united states as a as a nation allowed a decision to be made 1020 years ago to go into the fracking business to penetrate and transform the global oil market which had been controlled by the middle east by nigeria by the other major oil producers in opec and and russia and so on and the united states wanted quote unquote energy independence it could have and it should of gone after getting free of dependence on fossil fuel it didn't do that it made a different decision because it's more profitable to go into fracking fracking is

very expensive so the fracking companies went to america's banks borrowed the money because they promised this is a wonderful deal look at the price of oil lend us the money will bring up the oil we'll be able to pay you back of fact interest rate would be profitable everything was premised on the notion that the price of oil would stay high the saudis and the russians were hurt by the emergence of the american fracking industry they hated that industry from day one it's a competitor and now finally the russians together with the saudis and the notion that they're fighting each other is an illusion they are together fighting the united states because by bringing the price of oil down all of those fracking oil companies go belly up they're done and that would be bad enough as a shock but they can't repay their debts and that plunges the credit market and. banks into all whole new crisis which we're just beginning to learn to

understand threatens the whole system you put the corona together with the oil and you have a $12.00 punch that is making most of wall street realize that the glowing description of the american economy as the greatest in the world was a self-delusion of politicians and has no basis in the realities which are now coming home and shaking us about the very capacity to get through this and now professor wolf i want to touch on one more thing here before we go today i want to touch on sanctions something we've discussed many times over the last especially couple of months but probably many times over the last couple of years now iran is now urging the u.s. to ease sanctions that hinder imports of mission critical supplies such as medicines and food it needs to fight the coronavirus presently the sanctions have blocked every financial channel of bailable to iran and as

a result nearly 300 people have died from the outbreak the hardest hit after china and italy of course there in iran now what do you make of this situation and i mean should we be lifting the sanctions right now. well i think that what you're seeing and you should be very sensitive to it is that everybody now sees that this virus problem is enormous and you're going to get every kind of using of the virus crisis to get something that they couldn't a gotten otherwise companies that are failing are going to blame the virus because it's a lot easier than blaming their own managerial decisions politicians are going to blame the virus again that's why i stress it isn't the virus the virus was just the last straw it's a system that isn't working and as to what to do with the sanctions of course who stop them you need global coordination to deal with the global threat to our lives this is not the time go back to it later if you have to but of course stop all of

the interferences for the petty gains of one against another recognize the national and international threat we have which to wit w.h.o. has now certified as a pandemic and get to work coordinating instead of playing minor competitive games capitalism has always been a double edged sword professor much of what most of the economic update thank you so much. thank you. both so tight for a quick pause but harry here because on the other side we've discussed the breakdown of the supply chain in china but we're now going to turn our attention to the brain being felt in europe will go in-depth with expert analysis and as we go to break here are those numbers up of what.

good food descriptions sound up the even for the owners so how to choose the pet food industry is telling us what to feed our pets is really more based on what they want to sell us than was necessarily good for the pet turns out that food may not be as healthy as people believe and we have animals that have you know diabetes and arthritis and they have auto immune disorders allergies we are actually creating these problems and it's a huge epidemic of problems all of them i believe can be linked to very simple

problem of diet and some dog owners so heartbreaking stories about their pets last treats the larger corporations are not very interested in proving or disproving the value of their food because they're already making a $1000000000.00 on it and there's no reason to do that research. budget we talk about trouble he's got a demystified to see. political space if you weren't clear before like these folks are no better deny us so you know i you know you can reach out to friends say you know take responsibility maybe run for office at the end of the day you know i don't see how we've allowed a system where these people get away with you know mis representing us why they step up and do it yourself.

and welcome back the global business travel sector is expected to lose more than $800000000000.00 in revenue due to the corona virus according to the global business travel association business travel to asia will likely face the biggest hit with roughly 75 percent of companies saying they have canceled or delayed trips to china hong kong taiwan and other countries in the region according to this report now china is expecting a loss of more than $400000000000.00 in the country as the country has witnessed a 95 percent drop in business travel since the outbreak began europe is expected to be the 2nd most hit by it they are planning to lose just shy of 200000000000 due to limited travel now what's really interesting is that you just what you were talking about was just purely business travel but did you know that lever car was actually more than double that of business travel and it's got to be hit as hard if not harder obviously as business travel because when you doing business travel you have to go do that when you doing leisure travel you're making a choice to go out in the world when we're having these situations with

a crowbar and leisure travel contribute to 10 percent of global g.d.p. as well so this will be a very tough hit for the entire industry as a whole absolutely and as we mentioned earlier in the program fiscal stimulus measures are being taken throughout europe to curb the economic impact of the crown of virus in italy which has been one of the hardest hit nations by the outbreak prime minister does that because announcing a stimulus package of 25000000000 euros or roughly. 20000000000. we are just in the middle of the cabinet meeting and we have just decided to allocate an extra money $25000000000.00 euro because we are aware of the. country is facing me. 2525000000000 euros. we will not use all that right now but it will be available to all the good and we have done already as i always said in this emergency it is both a healthcare emergency economic emergency and in obviously has

a considerable social impact. and then u.k. the country's treasury chief announced a package consisting of roughly $39000000000.00 to help the country struggling economy. taken together the extraordinary measures i have set out today represent 7000000000 pounds to support the self-employed businesses and vulnerable people to support the n.h.s. and other public services i am also setting aside today a 5000000000 pound emergency response fund and i will go further if necessary those measures are on top of plans i will set out later in this budget which provide an additional fiscal loosening of $18000000000.00 pounds to support the economy this year that means i am announcing today in total a 30000000000 pound fiscal stimulus to support british people british jobs and british businesses. meanwhile the bank of england has made the decision to cut

interest rates by half a percent. following the spread of covert 19 risky. and commodity prices have fallen sharply in government bond yields have reached an all time lows consistent with a more deterioration in risk appetite and in the outlook for global and u.k. growth indicators of financial market uncertainty have reached extreme levels. although the magnitude of the economic shock from coronavirus is highly uncertain activity is likely to weaken materially in the u.k. over the coming months that's why we're acting today the m.p.c. is reducing bank rate by half a percent to not point to 5 percent this action will help support net cash flows of borers during a period in which economic activity is likely to be disrupted. the time to unpack here so let's bring in hilary forward board member of the british american business association. so hilary before we get to elsewhere in europe what do you make of

these measures coming out of the u.k. how big of a deal is it for the bank of england to cut rates to a quarter of a percent a quarter percent kristie you're absolutely right it is a big deal i think this is a jolt that the u.k. economy needs i also think it's leadership global leadership showing what needs to be taken it's actually action immediate action i think is actually going to do is going to show not the way to talk about bracks it what it takes in terms of independent decision making the u.k. has acted so quickly he talked about the spending measures and i would say 2 things you know some things are very important and drastic when there's no heckling in the house of commons you just had your course there was no hurricane whatsoever and even i mean it shows the depths of the help that they giving even any business affected by the lack of football fans which is a big industry across the u.k. they're even going to receive help so this is a big deal and it's a big example to all of europe and now even like the central bank in europe they're scrambling they're going to have a meeting you know tonight tomorrow they're having courser determine what to do but yes the u.k. has acted fast and it's very significant and it's interesting when we look at the

stimulus measures we are seeing actually. to be put in place a $39000000000.00 stimulus plan in great britain in the us we're having the conversation about payroll tax cuts and stimulus but we're really not seeing what the actual plan is yet now in the u.k. the footsie was down just about one percent where u.s. markets were held 5 percent on the day so is there anything to this the fact that you're seeing planes out of europe you're not really seeing a full plan coming from the u.s. you're absolutely right and we haven't seen a full plan yet trump is going to go on national television tonight as we speak wednesday he's announced to literally just announce that i think he's going to come out with a plan don't forget also as he said i think he's very right to say you know the this virus is not shoes with the republican or democrat and you know he's got to get things passed nancy pelosi and the democrats that want to stop everything so i think there's much more of an issue here in terms of whether he can get things through but i would say don't forget also the footsie hasn't had so far to form because of the issues in the doubt that i think there's been

a lot of the sort of doom and gloom is being baked into the pound and that's why you see the pound and in general investment in the u.k. that's why the footsie has not accelerated to the same extent that the u.s. stock markets had and the dow like you mentioned was down to 5 they were over down about 5 percent i think as they had father to fall as well last issue is of course that the u.s. has far more business in china such as apple and dell that are affected drastically and all links with china are far stronger than that in the u.k. and i do want to point out that obviously i mean while some people play this is a partisan issue both democrats and republicans are going to probably stick this thing in some capacity you have republican members here in the u.s. wearing gas mask to try to say that this isn't a big deal so i think that when it was also it where there was the. these are facts i mean this is going to be partisan in the us because that's where an election year that's the way things work here but hopefully they can work stuff out but i want to bring back something the german chancellor chancellor angela merkel said on wednesday. but. you have to understand that if the virus is in the path you. nation

has no immunity yet to this virus there are no facts. that a high percentage experts say 60 to 70 percent of the population will be infected as this situation continues. no more than 1500 cases 3 deaths so far the country is going as far as suggesting the case aleutian of events with an attendance of more than 1000 people. so what do we make of this comment that 70 to 80 percent of german citizens could be affected she said that she a former german health minister said absolutely not he thought up 240000 people rather than 58000000 so there's a drastic disparity there and i can't who is more accurate i do think that her doom and gloom and gloom projection now is a little bit sad because why are they close the borders why haven't they restructured vents and why haven't they done what all the nations of done which is move more swiftly to could tail large crowds to say they're going to stop crowds

over a 1000 what about crowds of hundreds you have schools in the u.s. closing you have universities in the u.s. recalling their international students you have far more action being taken by the u.s. and the u.k. it's actually surprising that she's you know spouting the doom and gloom and yet hasn't taken more steps to close down events in germany and schools and community events like italy did with the 10 towns closing immediately and quarantining and the austrian border shutting it's surprising that germany hasn't actually shut the borders but only right now there is only the possibility of closing non-essential business and public transportation so they haven't closed off completely yet then citing that this is their citizens liberty at stake so where does it come in like is it a public health issue or is it a liberty issue well actually i think it's a very confusing issue i think i think one thing to note is 2 things a lot of people always ask me like why is it so drastic in italy why so many people dying in italy a lot of people question the right actually it's because the american scientific has a very great article on this they have the oldest population in europe 23 percent

of their population is over. 65 and their median age is over 47 was the median age in the u.s. is 38 so number one the all the reason that more people are dying in italy is because of the age issue there secondly there's a lot of talk of it's difficult to get your finger on this but a lot of chinese illegal workers in midland in the fashion industry has it's difficult to kind of finally draw on that because they're illegal and that hasn't been documented so those are kind of 2 of the reasons but to answer your question kristie i think you got to look at 100000 a tally and died last year due to cigarette smoking 5000 risk because of cordova virus you know smoking is a human liberty issue the answer is it's up to the individual but when it comes to an epidemic of a pandemic like this according to the wall health organization societies have to start taking control absolutely forward which board member with the british american business association thank you so much for your excellent chrissy thank you. and that's it for this time you catch boom bust portable t.v. the portable t.v.

is available. it's available on google play store and the apple app store by searching portable t.v. or you can stream us to your t.v. by downloading for the t.v.'s on apple t.v. and online at portable dot tv and as always you can find our current of our car on the portable t.v. after you get the latest news and information about the spread of the virus as always check us out on. the must see you next time. down i want. someone one of the definitions and i'm dying. to see the. family and then you're going to bring.

the money. and i'm. going to let you know let me. say this our. next guest feeling if one means i love this i know better than this one tokyo plant it is going to go to me. like. this one was because did a piece of dancing quadrille cultural fishing from the premise. that skies are financial survival guide stacey let's learn a salad fill out let's say i'm not so i guess and here please. come back from the fight street spot thank you for.

destroying 6 that's right sell out debt slavery. the fed the super cool for sure to blow the whistle try to use me if the song is from the start well you sure see the chief we are stuck in feeling i mean misty's full well for the program would not only do it with me going for bush but i will push that so far the should have been kicked off no. 6 and. yes.

cool mommy intelligence on the stand whistleblower chelsea manning is in hospital after attempting suicide in jail she has been refusing to testify father in the u.s. government's wiki leaks probe. europe struggles to find a common approach to tackle the current virus outbreak which is now as a global pandemic by the world's health organization. 19 couldn't be. used as a pundit meek. and experimenting with explosives in britain can be no fall off to the supremes clears them on terror related charges we discussed the ruling. you know it was just expected.