Global Recession Risk, Trump Response, ECB Firefighting: Eco Day

(Bloomberg) --

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

• A pandemic-driven global recession is becoming more likely by the day as the flow of goods, services and people face ever-increasing restrictions
• President Donald Trump’s proposals to cushion the U.S. economy are likely to provide some relief but face an uphill battle. He’s also said he’ll significantly restrict travel from Europe for the next month, the administration’s most far-reaching measure yet against coronavirus
  • The panic spreading across financial markets is putting politicians in charge of the U.S. budget on the spot
• Canada appears on the brink of recession as the economy takes a double hit from the coronavirus and tanking oil prices, ramping up pressure on Prime Minister Justin Trudeau’s government to deliver a fiscal stimulus package
• Italy, the U.K. and Australia are among the latest governments to add to a fast-rising global tally of government stimulus to counter economic damage from the outbreak
• Christine Lagarde will bid to prevent the situation from sparking a repeat of the 2008 financial turmoil when the ECB unveils its monetary response today. Europe is starting to show resolve led by its 2008 crisis veterans
• The Bank of Japan will also likely expand its stimulus measures at its meeting next week
• China’s cabinet called for a further reduction in banks’ reserve requirements as the government seeks to ease monetary conditions
• The U.K.’s largest fiscal giveaway in almost three decades will be rooted in a borrowing binge that takes advantage of rock-bottom interest rates

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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