Europe's Central Bank Just Attacked the Coronavirus. Will It Work?
It's been an extraordinary week for financial markets. New fears about the economic impacts of the coronavirus outbreak have prompted stock markets around the world to slide precipitously, and many major multinational corporations and small businesses alike face difficult threats to their ability to operate. The situation has been particularly bad in Europe, where the COVID-19 pandemic has hit Italy especially hard and health officials have seen cases across the continent. Banks like Deutsche Bank (NYSE: DB) and Credit Suisse (NYSE: CS) have seen their shares plunge along with those of their U.S. counterparts.
To fight against economic pressure, the European Central Bank announced late yesterday that it would make a dramatic move to provide much-needed funds for businesses in countries in the European Union. The Pandemic Emergency Purchase Program (PEPP) has three main parts that the central bank hopes will shore up the condition of the financial system on the continent.
Image source: Getty Images.
Source Fool.com
