Worldwide Coronavirus Toll As of May 27, 2020;
Number of Cases: 5,606,925
Mortality Rate: 6.2%
Source: John Hopkins University
Japanese Prime Minister Shinzo Abe’s cabinet approved a new $1.1 trillion stimulus package on Wednesday with a substantial amount of direct spending to overcome the coronavirus crisis that has driven the world’s third-largest economy into recession.
New Japanese Aid Package
The 117 trillion yen record aid package, partly financed by a second extra budget, follows another 117 trillion yen package provided last month.
The new package accounts for 234 trillion yen ($2.18 trillion) of Japan’s total spending to combat the virus-induced economic fallout or about 40% of its gross domestic product.
Japan’s anti-virus spending is one of the largest financial packages in the world to deal with the coronavirus, approaching the size of the $2.3 trillion aid programs the US has provided so far.
“In the face of the difficult situation ahead, we must protect jobs and employment under all conditions. We must take all the necessary measures to prepare for the second wave of outbreaks,” Abe said, speaking to members of his ruling party parliamentarians.
The Meng Trial
As the world markets remain focused on the economic crisis caused by the coronavirus, Hong Kong, and fraught tensions between the US and China tensions, a trial in Vancouver, Canada will be closely watched.
Whether Meng Wanzhou, the CFO of the Chinese technology giant Huawei who is tried by a court in Canada’s British Columbia state, will be extradited to the US, will likely find an answer today.
The decision to be made about Meng, accused of spying and violating sanctions against Iran by Washington, will affect the tensions between the US-China and alter the Canada-China relations.
The court will decide whether the US charges against Meng are valid in Canada in what is called ‘double criminality.’ Speaking to the media on Tuesday, Chinese foreign ministry spokesman Zhao Lijian warned Canada.
US Prepares China Sanctions
Sources informing the US financial network Bloomberg said Tuesday that the Trump administration was evaluating sanctions against Chinese companies and financial institutions involved in a new law prepared to target Hong Kong’s autonomy.
The US Treasury Department was preparing to freeze Chinese officials’ assets and prevent them from making transactions.
US President Donald Trump, who refrained from giving information when asked about the issue, said he could make a decision on the Hong Kong issue until the weekend.
Meanwhile, in Hong Kong, where anti-Communist protests broke out, police detained at least 300 pro-democracy demonstrators.
EU Rescue Fund
The European Commission proposed a coronavirus economic recovery package worth a total of 1.85 trillion euros ($ 2.04 trillion) on Wednesday. Upon this development, the Euro advanced towards the highest level of the last two months at 1.1030.
The euro has been facing difficulties since March when investors began to withdraw to the safe haven of the dollar. If some countries led by Denmark and Austria are persuaded to support the rescue fund, leaving their doubts against the package the euro could rise even higher.