Goldman Sees 50bps Fed Cut, Banks on Alert, China Shock: Eco Day

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Welcome to Monday, Asia. Here's the latest news and analysis from Bloomberg Economics to help start the week:

• The Fed is now prepared to reduce interest rates this month -- with Goldman Sachs seeing a 50 basis-point cut -- even though it recognizes monetary policy cannot completely shelter the U.S. economy from the coronavirus. Globally, central banks are on alert
• China's economy is heading for a worse-than-expected first-quarter contraction after the manufacturing sector reported activity at a record low in February due to the coronavirus outbreak. Chang Shu doesn't see a straightforward recovery
• Australia is all-but certain to cut rates Tuesday following a rapid turnaround in market pricing. New Zealand may be forced to slash soon too as the virus threatens to tip the economy into recession
• Europe braced for more fallout from the coronavirus, 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 the German financial capital
• 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 British economy
• Saudi Arabia's economy all but ground to a halt last year, raising the likelihood that the government will turn on the fiscal taps in the face of coronavirus disruptions and the prospect of lower energy prices
• Global monetary officials have just been given a list of things to think about before they start issuing digital currencies to the public
• Bangkok is looking to solve its congestion and pollution woes by building a massive train station and overhauling its rail network in Thailand's biggest rail development project

To contact the reporter on this story: Alexandra Veroude in Sydney at averoude4@bloomberg.net

To contact the editors responsible for this story: Paul Jackson at pjackson53@bloomberg.net, Michael Heath

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