China Renewed Hit, When America Went Big, Oil Shockwave: Eco Day

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

• Just as China’s factories get back on their feet after being laid low by the coronavirus, a drop in demand from their biggest trading partners around the world is coming back to give them another hit
• Fear and panic spread through markets in what’s set for the biggest crash since 2008 -- and so did pleas for the U.S. to deploy all its spending power against the economic threat posed by coronavirus
• The shockwaves from a collapse in oil prices are rippling through the U.S. energy industry, limiting any boost from cheaper fuel. Indeed, the idea cheap oil can help the global economy isn’t clear-cut
• Global central bankers met by teleconference as they seek evidence the outbreak is tipping the global economy into a crisis. Mohamed El-Erian said the world’s policy makers will do all they can, but added it’s worrisome that coordination isn’t as solid as in the past
• President Donald Trump and his economic team were expected to weigh measures to contain the fallout as both parties moved to craft legislation, including possible tax cuts and expanded welfare benefit
• Fed officials, who slashed interest rates last week amid mounting concerns over the coronavirus, still have a range of tactical tools they can use to help ease financial distress
• Australia is headed toward its first recession since 1991 and Canada’s risks of a slump are rising. Meantime, the euro-area economy may be headed for its first recession in seven years
• Ziad Daoud parses the Gulf’s winners and losers from the oil price plunge and the virus’s spread
• Latin America’s crashing currencies are curbing the ability of policy makers to provide monetary stimulus to economies that were ailing even before the outbreak of the new coronavirus
• Italy will attempt to extend a lockdown throughout the country, even as questions linger about the enforceability of measures. Prime Minister Giuseppe Conte learned the political establishment itself has been hit
• Meantime, Riksbank Deputy Governor Martin Floden has been infected with the coronavirus after a visit to northern Italy

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

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

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