Planes grounded, trade stalling and even sporting events canceled, inevitably markets tumbling.

But the selloff has turned into the worst week since the global financial crisis more than a decade ago smiles for the starting bell.

In New York, the share prices slumped seconds later.

A week ago, they were at an all time high stop in London.

The 100 biggest companies are worth a staggering £210 billion less.

Then they were just seven days ago.

I'd say this is probably the most dramatic week I've seen since my time here in the markets that But yeah, what trading floors in London say they're witnessing is worldwide contagion.

Well, we've really seen investor panic gripping to markets across the world.

We've seen the biggest point drop in the Dow in its history.

We've seen $3 trillion wiped off global markets within a week, and it's not just the equity markets.

This is extended into other markets of well as well.

We've seen a major slump in the oil markets, is now in correction territory, correction territory trader talk for a drop off 10% and she's talking about oil.

One of the world's most in demand commodities.

The last time markets behave like this.

The 2008 financial crisis.

This is another black swan event, something that no one could have predicted.

And that's why we're seeing a lot of panic in the markets.

On the risk is that that does extend into a recession, and there are no reassuring words coming from global institutions.

We are likely to downgrade our growth projections.

A father for the world in Geneva, he should be setting up, not stripping down.

But the motor show has been canceled.

600,000 visitors on hundreds of car manufacturers told Stay at home fear as much of the effects of the virus is stalling trade and tourism, sending the markets into retreat.

There's only so far stocks and shares to slide before the question gets asked.

Governments and central banks need to kick in and take some action in the U.

S.

There's already speculation that the Federal Reserve might be getting ready to cut interest rates possible pressure then for the Bank of England to follow suit.

But interest rates already very low, so low there's no much further for them to go.

So how much.

One effect will any more cuts actually have rate zero or negative in some countries, so they don't They don't have my true form maneuver yet.

Market.

Expect central banks to come out car trade and reassure investors that everything is fine.

But the kind of policy that will be more helpful and more effective in this situation is fiscal policy more targeted mashes to help those companies.

Those areas that the mostly effective those targeted measures in China include extending large state loans to companies to keep them afloat.

Tonight, the government here said they are well prepared for any effects Corona virus may have on the UK economy.

Investors appear less confident, though, and neither have a crystal ball well, the first British death, the first cases in Northern Ireland and Wales.

Boris Johnson has said tonight the Corona virus is the government's top priority.

He said he discussed the U.

K's preparedness with the health secretary on the chief medical officer, but he won't be chairing an emergency cobra meeting until Monday.

The reach of the virus is spreading fast, with nearly 60 countries reporting cases.

The World Health Organization says it could reach most if not all countries today.

Nigeria, New Zealand, Lithuanian, Mexico and Iceland all reported their first cases.

Now most people have died of the infection have bean in mainland China, with nearly 3000 deaths outside China, Iran, South Korea and Italy have had the most victims here.

20 people have now been diagnosed with the illness.

Formal in the past 24 hours is our health correspondent Victoria McDonald.

In the aftermath of the Corona virus epidemic, whenever that is, experts will look to what happened on the Diamond Princess cruise ship and ask what lessons could be learned.

So far, six people who were on board have died, including one Britain who has not yet been named, while more than 700 passengers and crew contracted covered 19.

There have been scathing reports about the quarantine measures of officials sent to investigators.

It was docked in Yokohama themselves, falling ill and off inadequate testing.

But there will be lessons learned across the globe today.

The World Health Organization said.

49 countries have now reported cases.

Our epidemiologists have been monitoring this development continuously, and we have now increased our assessment off the risk off spread and the risk off impact off Corbett, 19 to very high at a global level.

This is a message from the W H O that says, Wake up, get ready.

This virus may be on its way and you have a duty to your citizens and to the world to be ready.

Perhaps a message to to Iran whether is concerned that the numbers infected and dying a far greater than officially claimed they have now closed the parliament and then the Shia holy city of calm center of the outbreak.

They using what one source told us, were chemical defense vehicles from the Iran Iraq war of the 19 eighties, this time to disinfect against this virulent virus.

Until this moment, taking into account the previous day's numbers, 388 people have been confirmed toe have covered 19 in the country.

Unfortunately, 34 people have died from this disease as off today noon.

Some sources, however, have told us that the death toll is far higher and that is worrying.

Already, 97 cases have been exported from Iran to 11 countries in the U.

K.

Where 19 people have now been confirmed with the disease, there have been warnings that if the situation worsens, mass gatherings may have to be canceled or schools closed in any pandemic preparation.

The government has a fine line between protecting the public and social consequences, so the London Underground doesn't feel sometimes like, but it closed down and get to work.

The N.

H S is preparing and details are slowly being released.

But in an extraordinary interview, the MP for City and Westminster today revealed that contingency plans in London include opening a morgue and Hyde Park.

Intense.

Noticeably absent has Bean the prime minister until today, when, perhaps responding to criticism, he first called an emergency Cobra meeting.

They're not until Monday and then tonight.

Asked about the death from the Diamond Princess, he said.

This I think it was.

We were following the best medical advice and I we regret any were very much the loss of life of the individual concern.

But way think that the best thing to do is not to move people around too much in the current situation, not to repatriate, unless you can be absolutely sure that there isn't going to be a spread and contagion to this country.

So that's the principle that we're adopting Evidence from China shows that those most at risk of dying from the spires are men over the age of 80 with pre existing health conditions.

That is also the case that 80% of people will have mild or no symptoms and can recover at home.

And the hope, though increasingly fragile, is that this epidemic can still be contained.

Well, we heard about the impact that all of this is having on the markets.

Eso Joining me now from southwest London is Lord O'Neill, former chief economist with Goldman Sachs.

He served as the commercial secretary to the Treasury in David Cameron's government and published a book, Superbugs on Arms.

Race Against Bacteria.

Lord O'Neill.

Global shares are at their worst week since the financial crisis.

Are investors right to be scared?

Do you think?

Well, if they just spent the last 10 minutes listening to your discussion, as I have Ah, I guess that plenty of reasons to be scared it's It's obviously a very troubling and complex situation, I think before, said he answer anymore.

I think it's important to remember that from a global economics perspective, this came out of extremely unfortunate time because we were just in December January seeing some signs of vague stabilization of the world economy after what had bean a somewhat worrying weakening throughout.

2019 with China already at the heart of that weakening and some countries of their economically so successful atT benefiting from China's rise, such as Germany, here in Europe or Japan in Asia, South Korea as well, already suffering from that.

So this this from an economic perspective is particularly unfortunate.

And of course, as I'm sure you've touched on in previous discussions.

China today is five times the share of global GDP that it was when we had solved 17 years ago.

So so should the World Bank's go the IMF this step in to try and avert a global recession?

And he's a global recession now inevitable in your view.

So I would imagine the must have been so very interesting.

Phone calls going on between G Circle G 20 Sherpas, which is the three officials of the leading 20 economies around the world about being ready to act.

It's no clear to me on I heard one of your previous speakers.

It's not clear to me what cutting interest rates would do in the slightest for a situation like this on indeed partly linked to other challenges of our time, about particularly issues to do with equality and both actual on dhe perceptions off it, further measures on interest rates or so called quantitative easing.

I don't think would be particularly sensible or helpful in my view.

Central providing liquidity.

But I well, our our financial leaders around the world sort of slightly powerless in the face of this are rather unknown threat.

So I think I think that can provide a lot of liquidity to make sure financial markets function properly and in some countries, that central bank and play a role to help make sure that the lending support might be there.

But I hope that this would accelerate what in some countries, including the UK, appears to be a growing recognition that they can have a more activist fiscal policy, particularly in terms of investment spending on, I think, whether it be here, Germany or China, to name just three really important places.

The case for having a more aggressive domestic fiscal policy response is very clear to me and I hope that's what now happens, the government's piling in and investing Maur by borrowing more.

I would say that the case for that is really stronger.

One of the other aspects of what's happened in the markets this week is a is a further dramatic drop in long term bond yields.

So governments combo what are historically extraordinary lower rates for a very long term into the future.

And so, if the world were time to do things like that to invest in infrastructure, many of the topical things that you have on your program every other nights and another one's as well this is this is a particularly opportune time toe, perhaps even beam or ambitious about those things than they might have been thinking just two or three weeks ago.

In my view, you had your hands on the levers of power in government from the outside.

Now looking in, do you think the government has a grip of this crisis?

Do you think it looks like they do?

Well, it it sze very difficult to to try and, uh, pretend to have ah expert view on anything like this particular if you know, an infection specialist.

But what I would say in their defence.

So far, I look at all sorts of numbers about this.

Every day s so far the infection rate in the UK it's still very low relative to countries that we might regard as our peers.

For example, in France, it's I think, there's close to, if not more than twice as many recorded infections Germany even more than that.

So so far we seem to be doing okay and I think as it's being discussed also earlier, where the center of the spread here has Bean has been indicated and recognized pretty quickly on this.

This balance between China scare bezel or make sure we're prepared is is what they have to keep reviewing every day, and so far I think they're doing the best they can.

But it's obviously a very unpredictable Onda worrying time for everybody.

Lord O'Neill Thanks very much for joining us.

Well, we did ask the Department of Health and Public Health England for an interview, but no one was available from either of those bodies.

I have Oh being speaking toe on a Subaru.

The former MP, who lost her seat at the last election and was a minister in the Department of Health itself.

I began by asking her about whether she was surprised that the Prime Minister hadn't yet chaired a meeting of Cobra about the Corona virus.

I wish I could say that I was surprised, but I'm afraid I think this is absolutely in the character of Boris Johnson.

And I think he has a pitiful understanding off the realities off how people are looking at this problem, how they need guidance, how we need to make sure that our red H s is prepared on.

He needed and should've got a grip on this and his government have done the same some considerable time ago.

The government says that you know, weekly meetings of Cobra have bean happening.

They just haven't involved the prime minister and the public health.

England is meeting with the relevant department.

So they're saying a lot is going on behind the scenes and perhaps to doom or in public would panic.

People wouldn't know.

It's not about doing things in public.

Do forgive me.

It's about making sure that you handle what is undoubtedly a very serious situation.

Cobra is the most as I know that I have been involved in covert when I was a health minister on when I was a business minister.

What it does is it brings the people that should be brought together at the most senior level.

It literally either sits them around the telephone or at the same table, and he gets a grip of the situation and it sorts out the messaging.

One of the really important things in this whole circumstances is the lack off good communication with people.

So the too many people are panicked, They are worried, and they need to be given good, sensible, easily accessible facts and advice on that that begins to calm everything down at the same time as you're making sure that all the other pieces of the chicks all that unique getting place, the N hs social service is all those things are being done.

Should the government have moved to repatriate the British systems on board the Diamond Princess cruise ship earlier?

Do you think, of course he should.

And what about 10 everything.

What is happening there in the area where I live in the East Midlands?

We have schools.

You are providing conflicting information to parents when people start to get that information as stating all the Internet through social media sites, then with all sorts of other information on dhe misinformation.

Understandably, people don't know what to believe on.

There are worried, and they are panicked on a Subaru speaking to me earlier what President Trump has predicted the one day the Corona virus will disappear, claiming it's like a miracle.

But other U.

S officials have warned the country should prepare for significant disruption to everyday life.

So let's go live now to our Washington correspondent.

She want candy shiv on.

Explain, please.

Well, Kathy, you only have to look at the screens here, the red screens to understand what's going on.

Americans have clearly gone into panic mode.