Fed’s Credit Crunch Pressure, U.S. Trade Patience, Oil: Eco Day

(Bloomberg) --

Welcome to Monday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the week:

• The Federal Reserve is under intensifying pressure to tackle the risk of a worldwide credit crunch as falling commodity prices combine with the spreading virus to hammer financial markets
• Bloomberg Economics projects the U.S. will narrowly avoid recession, with growth slowing close to stall speed through midyear
• The U.S. is willing to show China some flexibility on its pledges to boost American imports as long as Beijing ensures exports don’t surge when production returns to full strength and widen the trade imbalance between the world’s two largest economies, people familiar with the discussions said
• The U.S. is stepping up its response to the coronavirus as governments around the world open up the fiscal spigots to counter the economic damage from the outbreak. Here’s an overview of what global policy makers have pledged to do
• Another shockwave is about to rip through a world economy already reeling from the coronavirus -- a plunge in the price of oil
  • Bloomberg Economics’ Tom Orlik explains what the oil plunge means for global growth
• Potential trade partners are pursuing South America’s commercial bloc after a sweeping deal with the European Union showed most of its members are open to business, according to Uruguay’s Foreign Minister Ernesto Talvi
• The euro-area economy may be headed for its first recession in seven years as the coronavirus outbreak takes an increasing toll on businesses and consumer confidence
• Finally, here’s our preview of what to be on the lookout for in the world economy this week

To contact the reporter on this story: Zoe Schneeweiss in London at zschneeweiss@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Brian Swint

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