Central Bank Response, OECD Gloom, Factory Slump: Eco Day

Written by
David Goodman
Written by

David Goodman

Twitter
WhatsApp
Facebook
Reddit
Email

(Bloomberg) --

Good morning Americas. Here's the latest news and analysis from Bloomberg Economics to help start the week:

Global central bankers from Japan to the U.K. promised to act as needed to stabilize financial markets rattled by the spreading coronavirus as pressure builds on monetary policy makers to do more to safeguard their economies
- The Fed is now prepared to reduce interest rates this month -- with Goldman Sachs sees a 50 basis-point cut -- even though it recognizes monetary policy cannot completely shelter the U.S. economy from the virus
- Australia now is expected to cut rates Tuesday, according to market pricing that has undergone a rapid turnaround. New Zealand also may be forced to cut soon too as the virus threatens to tip the economy into recession
Meanwhile, the OECD said global growth will sink to levels not seen in over a decade as the outbreak hammers demand and supply
- Europe is braced for more fallout, as infections in Italy jumped 50% in a day, a dozen new cases were reported in the U.K. and the first infections broke out in Germany's financial capital
- The coronavirus also means that Governor Stephen Poloz is poised for a dramatic farewell at the Bank of Canada before his departure in June
- Asian manufacturing took a tumble in February, with a severe contraction in activity in China driving down output across the region
  - The outbreak is also starting to feed through to British factory supply chains, casting doubt on whether an upswing in activity after Boris Johnson's election will continue
  - The U.K. outlined its negotiating objectives for trade talks with the U.S., seeking a deal it hopes will deliver a 3.4 billion-pound ($4.4 billion) boost to the economy. British and EU officials will also start trying to hash out a trade deal today
  - And finally, global monetary officials have just been given a list of things to think about before they start issuing digital currencies to the public