and our markets reporter chelsea de laney is covering the story joins us now from frankfurt chelsea this may be the lowest point ever seen in the purchasing managers index but it's not entirely surprising how are markets reacting. we haven't seen a huge reaction to this report the docs are still up about 5 percent as of about 6 percent later so a bit of a pullback but as you said it wasn't totally unexpected that we were going to see a pretty sharp decline and these surveys one surprise is that the decline is really coming from the services sector so you know we've seen a huge shutdowns across europe so businesses are shot at restaurants hotels transportation all are really coming to a complete standstill but the manufacturing sector is across germany italy and the broader euro zone are actually holding up a little bit better than people had expected that's in part because a lot of the more strict shutdown measures thought led companies like walks wagon and an air bus to completely you stop production they really only got put in place in the past couple of days or over the past week or s

better but italy has announced the equivalent of a nation wide lockdown to talk more about that chelsea de laney is then by force in frankfurt. tell us about the effects then on the eurozone considering what's happening to the euro zone's 3rd biggest economy. well for italy this a lot of economists say this basically guarantees a recession expectations for italy's t.t.p. this year were basically flat there was expected to be no growth and these containment measures are going to have a significant impact on the economy what the government has said so far is that people can still go to work if they need to public transit is still open in some cities but this is obviously going to head you know travel tourism retail all sorts of industries and it could certainly push italy into recession but what this means for the broader euro zone is really going to be determined by what happens to other euro zone countries and in terms. spread of the virus germany for example is also dealing with the surge of corona virus cases and it also is on the verge of recession so if we see this start to really spread and

can withstand this shock and awe stuff financial correspondent chelsea de laney what she thought of the measures. 37000000000 dollars this is certainly welcome excuse me euro zone certainly welcomed by investors but what's really important is the fact that the e.u. commission is going to allow flexibility and budgets and it within the e.u. e.u. countries are sort of they have to keep their deficits at a certain level they can't really go above that that's going to be a big problem for a country like italy which already has a huge debt burden about 130 percent of g.d.p. and now they are just a saying normalcy economic challenge that they need to combat with a lot of what a lot of spending they need to keep money flowing to businesses they need to keep money flowing. also to consumers who are out of work right now and under normal rules they wouldn't be allowed to do that so the fact that they are signaling that italy and other countries are going to have flexibility is seen as a really crucial part of this part of this announcement to maximum flexibility from the e.u. and as far as the g