The ECB will accept some
The ECB will accept some "trash" bonds as loan collateral
Britain is beginning to experience a peak epidemic.
As stated by the Head of the British Foreign Office D. Raab, Britain "is beginning to pass the peak" of the coronavirus epidemic.
He also added that the WHO needed reform, but also recognized the important role of the organization in combating the global crisis.
The president of the Fed St. Louis has a plan to restart the economy...
James Bullard, President of the Federal Reserve Bank of St. Louis, sees a quick and effective way out of the Coronavirus-induced economic crisis in mass testing.
To implement such testing, the federal government must fully pay the cost of companies to produce tests that can show whether a Covid-19 person is overwhelmed or not.
In a conversation with journalists on Friday, Bullard said that a massive ban on economic activity to curb the spread of coronavirus costs the U.S. $ 25 billion a day. This is very expensive given the uncertainty about the timing of the ban, which gives the government a very strong incentive to directly fund test companies.
"We need to raise production to crazy levels," Bullard said. - We need millions, hundreds of millions of tests, and to produce them we need a natural industry with zero marginal costs.
Production costs will be paid by the federal government, and the price at which subsidized companies sell their tests will be their net profit, Bullard added,
"If you guarantee them a profit, it'll be like gold rush," he assured. - Everything will start producing tests".
In Bullard's view, indiscriminate testing will identify those who have already suffered infection with coronavirus, allowing healthy people to return to work while others recover. Removing uncertainty about infection "will leave the pandemic behind, regardless of vaccine or drug availability," he said.
The ECB will accept some "trash" bonds as collateral for loans.
The European Central Bank has announced that it will accept some "trash" bonds as collateral for loans. This decision was another measure to make it easier for eurozone banks to access ECB money amid a coronavirus pandemic.
The decision means that banks will still be able to use Italian and Spanish government bonds as collateral for loans, even if their credit ratings are downgraded.
The ECB statement said that the bonds, whose ratings were investment grade as of April 7, will be considered eligible for collateralization. The bank will also demand appropriate risk discounts. Such rules will be valid until September 2021.