TFG Weekly Trade Briefing, 23rd March 2020

Your Monday morning coffee briefing from TFG. Here are some of the last week’s updates from the trade sector. The impact of the coronavirus crisis is being felt in all corners of the world, slowing down global trade, isolating people, communities and businesses, and calling for a global coordination response.

WTO welcomes G7 leaders’ statement on COVID-19

WTO Director-General Roberto Azevêdo today welcomed the co-ordinated statement by G7 leaders calling for closer cooperation to fight the COVID-19 pandemic and minimize its economic fallout. “This global challenge requires a global response, on the public health front and in the economy. It is only by working together that we will find solutions.” On 16 March, G7 leaders agreed to support global trade and investment and do “whatever is necessary to ensure a strong global response through closer co-operation and enhanced co-ordination.” Read more →

Global economy will suffer for years to come, says OECD

The world will take years to recover from the coronavirus pandemic, the Organisation for Economic Co-operation and Development has warned. Angel Gurría, OECD secretary general, said the economic shock was already bigger than the financial crisis. The OECD has called on governments to rip up spending rules to ensure speedy testing and treatment of the virus.Mr Gurría said a recent warning that a serious outbreak could halve global growth to 1.5% already looked too optimistic. Read more →

ICC-WHO Joint Statement – Private sector call to action to tackle COVID-19

In a coordinated effort to combat the coronavirus COVID-19 pandemic, the International Chamber of Commerce (ICC) and the World Health Organization (WHO) have agreed to work closely to ensure the latest and most reliable information and tailored guidance reaches the global business community. The ICC will regularly send updated advice to its network of over 45 million businesses so that businesses everywhere can take informed and effective action to protect their workers, customers and local communities and contribute to the production and distribution of essential supplies. Read more →

ECB announces €750 billion Pandemic Emergency Purchase Programme

The ECB announced it would buy €750bn of government and corporate debt in a bid to stabilise markets and to counter the serious risks to the monetary policy transmission mechanism and the outlook for the euro area posed by the outbreak and escalating diffusion of the coronavirus. Central banks are massively scaling up the provision of loans to corporates. The Federal Reserve also announced it is cutting its benchmark interest rate to near zero and said it would buy $700bn in Treasury and mortgage-backed securities as it attempts to head off a severe slowdown. Read more →

Chancellor unveils £350bn lifeline for economy

The UK government has unveiled a package of financial measures to shore up the economy against the coronavirus impact. It includes £330bn in loans, £20bn in other aid, a business rates holiday, and grants for retailers and pubs. Help for airlines is also being considered. Chancellor Rishi Sunak announced the government will also pay the wages of employees unable to work due to the coronavirus pandemic, It will pay 80% of salary for staff who are kept on by their employer, covering wages of up to £2,500 a month. Read more →

ADB – Development Banks step up in the fight against COVID-19

The impact of COVID-19 on trade finance is hard to gauge at this current point in time, as the situation changes day by day. But the requirements for multinationals and development banks has never been more important in keeping supply chains running. In response to ADB’s recent USD $200mn to boost trade finance, TFG heard from Steven Beck, Head of Trade & Supply Chain Finance at Asian Development Bank. Read more →

ANNOUNCED: International TFG Trade Awards 2020

Following a year of geopolitical uncertainty, technological disruption and competition, the 2020 International Trade Finance Awards by Trade Finance Global in cooperation with BAFT recognise and award those who have succeeded and provided an outstanding contribution to international trade. Trade Finance Global Awards are totally independent and judged by an expert panel of trade specialists. Read more →

Tradecast: Looking beyond COVID-19

During these strange and unprecedented times, the global trade industry must act together to continue servicing economies around the world. TFG and ITFA welcome global experts from the industry, joining us from Singapore and London, to discuss how the trade industry is not only keeping the lights on, but forming the frontline for millions of businesses around the world. Debate, ask questions, challenge and inspire – we hope you enjoy our first ever ‘tradecast’. Join us on the 25th March at 9AM GMT / 5PM SGT. Read more →