Trump Checks, German Joint Debt, China 11% Contraction: Eco Day

(Bloomberg) -- Welcome to Wednesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• The Trump administration is discussing a plan that could amount to $1.2 trillion in spending -- including direct payments of $1,000 or more to Americans. Think of a number, then double it. That’s more or less what Wall Street is telling government
• German Chancellor Angela Merkel said she’s ready to consider joint debt issuance to help contain the impact of the coronavirus, an opening that could transform EU finances
• China is estimated to now be operating at 80% to 85% of its normal level. Bloomberg economics is lowering 1Q GDP forecast to -11% year-on-year, writes Chang Shu. China’s deepest slump in decades carries warnings and lessons
• Goldman Sachs and Morgan Stanley joined the rush to declare that the coronavirus has triggered a global recession, with the debate now on its likely length and depth. Here’s what to know about recessions
• Central banks are starting to deploy a crisis-era lesson that it’s best to take out insurance than worry about running out of ammunition
• South Korea’s parliament moved with uncharacteristic speed to approve an extra spending package to help shield the economy
• Boris Johnson’s government announced a massive rescue package of loans and grants for businesses in a desperate attempt to stop the coronavirus pandemic wrecking the U.K. economy
• Europe’s central banks will give lenders cheap access to dollars in operations investors hope will ease the crisis. Policy makers could still come up with monetary stimulus if the economic hit worsens, as long as they’re willing to be even more radical
• France is ready to use the ultimate weapon to protect its biggest companies from the market turmoil: nationalization
• The Fed will restart a crisis-era program to help U.S. firms borrow using commercial paper after the market came under “considerable strain.” Here’s how the 2020 facility differs from 2008’s
• Some $1.14 trillion in fiscal support has been pledged or is under consideration as governments around the world rush to contain the virus and shore up financial markets and businesses
• The number of Norwegians seeking unemployment benefits jumped by a staggering 128% in just a week as the spread of the coronavirus brings the richest Nordic economy to a near standstill
• Moving ahead with the Olympics in Tokyo would be “insensitive and irresponsible,” according to Canadian ice hockey player and International Olympic Committee member Hayley Wickenheiser

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