Firefighting the Virus, China Output, U.S. Boom Doubts: Eco Day

(Bloomberg) --

Happy Friday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day and send you into the weekend:

• The world economy may be heading for its worst performance since the financial crisis more than a decade ago as the spread of the coronavirus increasingly dashes hopes of a swift rebound
  • In the U.K., the bounce from Boris Johnson’s Brexit breakthrough could be cut short, while in Germany growth will almost certainly be weighed down, even though Bundesbank President Jens Weidmann said the effects of the epidemic don’t yet warrant a monetary-policy response
  • An adviser to Prime Minister Shinzo Abe said Japan should compile another economic package with fresh spending of at least 5 trillion yen ($45 billion)
• Even as major central bankers say its too soon to respond to the economic fallout from the coronavirus, some economists are debating the need for rare coordinated monetary easing by the Federal Reserve and its key counterparts
  • Investors aren’t buying the idea that central banks’ wait-and-see approach to the coronavirus will last, ramping up bets on interest-rate cuts that could start within months
  • Former Reserve Bank of India chief Raghuram Rajan said policy makers should fight the virus first and worry about stimulus later
• China is slowly starting to get back to work, as it battles an outbreak that has killed more than 2,600 people and sickened tens of thousands. It’s running at about 60%-70% of its normal level as factories re-open, Bloomberg Economics analysis shows, but Saturday will bring the biggest and most-anticipated insight on the impact yet, with a key gauge of manufacturing activity set to plunge
• Democrats say millions of Americans aren’t feeling the benefits of what Donald Trump calls a “blue-collar boom” in economic growth and jobs. South Carolina offers evidence for both arguments
• Explore some of our best economy reads from the week here

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

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

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