The Netherlands, Austria, Sweden, and Denmark, known collectively as “the thrifty four” of the European Union, announced their plan for the EU’s recovery fund on Saturday. In a so-called non-paper, the above countries announced that the fund should consist of loans on favourable terms rather than gifts. Member States have been discussing the terms and conditions of this fund, intended for southern European countries that are hit hard by the corona crisis for weeks. France and Germany previously proposed that the fund should consist of gifts.
The Japanese government is considering a new aid package worth ¥ 100,000 billion (€ 852 billion) to support the declining economy. The money will mainly help companies that have a hard time because of the coronavirus outbreak, reports the Japanese newspaper Nikkei. The coronavirus outbreak is pushing Japan’s economy into the deepest recession after World War II. Analysts expect the Japanese economy to decline by 22% in the second quarter of 2020.
China will continue to drastically limit international air traffic in passenger transport until at least mid-October. The US government wants China to be much more flexible and threatens to take steps against Chinese airlines. In addition, China has announced that it does not intend to return to a planned economy. President Xi Jinping announced this Saturday in response to US criticism that China has failed to implement promised reforms.
The 6M Euribor decreased with 1 basis point to -0.15% compared to previous business day. The 10Y Swap is unchanged at -0.14% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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