United States

• US lawmakers have passed $2 trillion stimulus package. The legislation includes direct payments to individuals, a boost to unemployment benefits and a $500 billion lending program.
• Congress has already approved more than $112 billion to ramp up vaccine research and provide two weeks of paid sick leave for those who are being tested or treated for COVID-19.
• The Federal Reserve has let loose a tsunami of stimulus measures in recent days. That includes an initial pledge to purchase $700 billion in US Treasuries and mortgage-backed securities, which now has no cap and can include corporate bonds and bond exchange-traded funds. The Fed also announced $300 billion in new financing to keep credit flowing to businesses and consumers.

Canada

• In a rare session, Canadian lawmakers passed legislation that will subsidize up to 75% of workers’ salaries to avoid even more mass layoffs during the COVID-19 pandemic.
• Canadian Prime Minister Justin Trudeau, now out of quarantine after his wife tested positive for the virus in March, attended the scaled-down session with a "quorum" of about 20 lawmakers.
• Opposition parties joined Trudeau’s governing party to unanimously approve the wage-subsidy scheme, which will cost more than $50 billion (in US currency) and will be applied retroactively to days worked since March 15.
• A majority of Canadian companies are likely to qualify for the subsidy.

Australia

• Other stimulus measures include inexpensive bank financing which is aimed to stimulate borrowing, part of this was announced by the Reserve Bank of Australia.
• The government also announced a $20 billion loan guarantee to help impacted small/medium-sized businesses meet cash flow requirements. If you include these total loan guarantees with the direct fiscal stimulus, then the total stimulus in the economy is worth around 10% of GDP.
• There are also RBA interest rate cuts and three-year government bond purchases to meet the 0.25% yield target. 

• Details of the package announced to include: increase the payment of the Newstart allowance (an additional $550/fortnight) and expanded eligibility for income support (the Newstart allowance). It also includes:
  • Further $750 payment (on top of the $750 already announced) for those on welfare support (5.2 million Australians), and Job Keeper Payments
  • Early access to superannuation for those whose wages have been directly affected by the virus (draw up to $10K from superannuation this and next financial year) tax-free, 
  • More flexibility around retirees on drawing down on their superannuation and increasing cash payments to SMEs ($20K payment up to $100K).

• The Prime Minister said that more stimulus initiatives are likely, and citizens should expect more direct cash handouts to Australian households to be announced over the next few weeks. 

United Kingdom

• The UK government has unveiled £330 billion ($397 billion) in loan guarantees and suspended local business taxes for the retail, hospitality and leisure sectors for 12 months. It will also cover 80% of workers' salaries for at least the next three months, up to a maximum of £2,500 ($2,900) a month. It's unclear how much that initiative will cost.
• In addition, the UK government promised to provide the self-employed with a cash grant of 80% of their average monthly profit, up to £2,500 ($3,000) a month, over the next quarter.
• The Bank of England has said it will increase its holdings of UK government and corporate bonds by £200 billion ($242 billion).

European Union

• Germany has unveiled a rescue package worth up to €750 billion ($825 billion) that includes measures to spur lending to businesses and take direct stakes in companies.
• France has approved €45 billion ($50 billion) in relief for small businesses and unemployed workers. It is also guaranteeing €300 billion ($330 billion) in corporate borrowing.
• Italy has greenlit €25 billion ($27.5 billion) to help workers and support the country's health system, while Spain has put up €200 billion ($220 billion).
• The European Central Bank has said it will spend €750 billion ($824 billion) buying government debt and private securities before the end of 2020, and stands ready to do more if necessary. That's on top of €120 billion ($133 billion) in extra purchases it announced previously.

China

• So far, China has announced at least 116.9 billion yuan ($16.4 billion) in financial relief and stimulus, plus 800 billion yuan ($112.5 billion) in tax and fee reductions. .
• The People's Bank of China has adopted various credit easing measures, allocating at least 1.15 trillion yuan ($162 billion) to help businesses hit by the virus.

About MEDISCA

Medisca is a global corporation with locations throughout North America, Australia, and Europe, that contributes to healthcare by leveraging strong partnerships that deliver customized solutions with an unwavering commitment to quality and innovation. Backed by 30+ years and a strong foundation in pharmaceutical compounding supply, Medisca is a business-to-business company that delivers comprehensive offerings by providing value, consistency, responsiveness, and loyalty. As Partners in Wellness, Medisca offers an unfailing devotion to improving lives across a multitude of needs and people. For more information visit www.medisca.com and follow us on LinkedIn, Facebook, Twitter, and YouTube.

Contact:

Adam Pinsky