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China Takes the Baton, BOE Speculation, BOC Decision: Eco Day

China Takes the Baton, BOE Speculation, BOC Decision: Eco Day

(Bloomberg) --

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • The biggest shock to the world economy since the financial crisis is stoking expectations that China will ramp up stimulus with interest rate cuts, cash injections and more support for struggling companies
    • Speculation is also mounting that the Bank of England will follow the Federal Reserve with an emergency interest-rate cut
    • The Bank of Canada is also poised to follow the U.S. and cut rates, while policy makers in the Gulf have followed the Fed’s move
    • More action may reassure investors, who were alarmed by the Fed emergency interest rate cut yesterday because they seemed to be acting alone
  • Donald Trump’s response to the coronavirus outbreak and the damage it’s inflicting on global markets is most notable for what he hasn’t done
  • Applications to refinance U.S. homes surged last week as 30-year mortgage rates tumbled by the most in nine years
  • Finally, don’t miss our story on how a U.S. stainless-steel company found that its plan of a Chinese savior got caught up in Trump’s steel tariffs and rivals’ complaints it’s a Trojan Horse

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Zoe Schneeweiss

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