‘Warp Speed Stimulus,’ Market Crunch, Merkel Powers: Eco Day

(Bloomberg) -- Welcome to Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend:

• Congressional leaders raced to draft legislation for the next virus-related economic rescue plan that could exceed the size and scope of the emergency measures taken during the 2008 financial crisis
• Markets are sending central banks a stark message: tackling the economic impact of the coronavirus isn’t just about easing financial conditions. It’s about getting ready for a sudden stop
• German Chancellor Angela Merkel’s government is considering taking steps that would declare a state of emergency, a move that would permit unlimited borrowing to help stem fallout from the coronavirus
• A canceled or postponed Olympics would likely result in Japan’s economy shrinking for the longest stretch since the financial crisis
• The BOE cut interest rates to a record-low 0.1% and added 200 billion pounds ($230 billion) to its asset-purchase program
• The Fed established temporary dollar liquidity-swap lines with nine additional central banks, expanding the rapid roll-out of financial-crisis-era programs
• New Zealand’s central bank will offer term loans to banks in an attempt to ease tensions in credit markets
• Australia’s treasurer said the government is working on a second stimulus package that will be “significantly bigger” than last week’s A$17.6 billion ($10.1 billion) fiscal injection
• Filings for U.S. unemployment benefits surged last week to a two-year high as the coronavirus pandemic forced employers to start laying off workers. Claims will move sharply higher on coronavirus-related disruptions and business closures, writes Eliza Winger
• European government bonds from Italy to Greece surged after the ECB launched a 750 billion euro ($810 billion) debt-buying program to keep borrowing costs in check. The ECB “will do everything necessary” to protect the euro-area economy from setbacks related to the coronavirus, including expanding on the emergency stimulus
• The rapid unraveling of Indonesia’s currency leaves the nation’s central bank with few options to counter the threat to economic growth from the deadly coronavirus pandemic, according to analysts
• American companies, and importers in particular, have once again pleaded with President Donald Trump to allow for tariff relief to ease the dire economic situation
• After a halting start, governments and central banks have finally been coming to grips with the economic consequences of the coronavirus outbreak. And the extreme measures needed to limit infections may intensify the slump, writes Shawn Donnan

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