Coronavirus toll of March 8, 2020*;

Number of Cases Worldwide: 107,535

Deaths: 3,660

Mortality Rate: 3.4%

With the spread of coronavirus in the Middle East and Europe, the week ahead will again be under pressure from virus-related developments.

The Outbreak in Italy and Arabia

In Italy, the government quarantined about 16 million people in Lombardy and 14 other provinces, including the city of Milan as the virus, turned into an epidemic. The outbreak is pushing the country into yet another potential recession.

On Sunday, Saudi Arabia quarantined the eastern province of Qatif, a major oil production center home to a large Shiite Muslim population to prevent the spread of coronavirus after 11 people were infected.

Oil prices will continue to be under strain as the Saudi-led Opec and its allies particularly Russia refused to deepen and extend oil supplies.

The situation that turned into an epidemic in Iran, Japan and South Korea also affected western European countries such as Germany, France, and the Netherlands.

British Budget

While the disease is making its mark in Britain, the new Chancellor Rishi Sunak will propose his first budget proposal on Wednesday.

After the big election victory at the end of last year, Prime Minister Boris Johnson‘s government aims to bring more investment and expenditure to the northern regions where he managed to wrestle the working class from the Labor Party.

ECB Interest Rate Decision

The European Central Bank, ECB, will meet on Thursday and make its move after its American counterpart Fed last week went for a rare out-of-calender 50 basis points-interest rate cut in response to the virus pandemic.

Trying to get out of the long shadow of her predecessor, Mario Draghi, President Christine Lagarde will be facing her first real test as rates stand at a record low of 0.5 percent. The bank faces a potential recession in the Eurozone, as investors expect a cut of 10 basis points.

Democratic Primaries

Democrats in the US will continue their in-party race on Tuesday to choose the best candidate to overthrow President Donald Trump in the November 2020 elections.

Former VP Joe Biden and his chief rival, the independent socialist Bernie Sanders will try to win the most delegates of the democratic party this time in Michigan, Washington, Missouri, Mississippi, and Idaho.

Economic Calendar

Monday: Japan GDP

Tuesday: China CPI and PPI

Wednesday: UK GDP, UK Manufacturing Production, US Core CPI, US Crude Oil Inventories

Thursday: US PPI, Euro Zone Deposit Facility Rate, ECB Marginal Lending Facility, ECB Monetary Policy Statement, ECB Interest Rate Decision, ECB Press Conference

Friday: Germany CPI

*Reuters, WHO, John Hopkins University


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