Possibility of the partial reopening of The United States economy
President Trump wants to reopen the U.S. economy within the next month or two. Although the number of COVID-19 cases has doubled in the United States over the last week, Trump is positive that the outbreak of the virus is slowing down.
On Tuesday, the virus grew by only 8.1%. Fewer people have tested positive to the virus in what would be the fifth straight day. As it appears, the curve is flattening, and President Trump is determined to partially reopen the economy in four to eight weeks from now. He mentioned the possibility in a report on Fox News on Tuesday.
This thought had also been earlier expressed on Fox News by the president’s exclusive economic advisor Larry Kudlow. He hinted at the partial reopening of the economy.
If the curve continues to flatten, the president might be tempted to open up all the sectors of the United State’s economy.
The number of COVID-19 cases in the U.S. is now well above 400,000.
Deadlock in the Eurozone
The finance ministers of the Eurozone have failed to agree on the measure to implement to fund the Euro’s fiscal response to the Coronavirus crisis. A meeting to discuss these policies – between Spain, France, Italy, and other European states was suspended until Thursday. The suspension was due to fallout on demand.
Olaf Scholz, the finance minister of Germany, is one of those opposed to the bonds. Regardless, he said in a report that a deal is imminent.
This special intervention appears to be very necessary. Economic recession is impending in Europe. The French GDP dropped by more than 6% in just the first quarter.
This drop is small compared to what might happen to Germany in the second quarter. Analysts have predicted that the GDP might shrink by about 10% in the second quarter. The GDP had dropped by 1.9% in the first quarter.
Death tolls in Europe are now well above 40,000. Almost half of the deaths come from here. Just four days ago, the virus claimed the highest number of lives in Europe.
Oil Prices surges in the wake of OPEC+ talks
Oil prices have been highly volatile these last couple of weeks, rising, then witnessing rapid falls. Following the shift of the OPEC+ meeting on Monday, earlier this week, oil prices dropped rapidly. However, over the last day, the oil prices have been on a fast rise.
A significant number are hopeful that agreement between the two leading countries Russia and Saudi Arabia, will be reached on the oil cuts.
On Wednesday, the U.S. crude futures were up by 3.6% and sold at $24.48 per barrel, while Brent futures sold at $32.05 per barrel- an increase of 0.6%.
The United States as well are looking to cut their oil production outputs by 1.2 million barrels a day for the year. This cut is in a bid to provide an overall balance to the oil cut processes.