Recession Looms, ‘Whatever Is Necessary,’ Credit Crunch: Eco Day

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

• President Donald Trump markedly shifted his tone on the coronavirus outbreak, warning it could last months and drive the U.S. economy into a recession. The official recession panel could make this judgment within months
• Leaders of the Group of Seven said they will do “whatever is necessary” to ensure a globally coordinated response to the coronavirus pandemic and its economic fallout
• The Fed encouraged banks to take advantage of its primary emergency lending facility to keep credit flowing. Meanwhile, it has been urged to backstop state government finances
• A gauge of manufacturing in New York State plunged in March by the most on record, offering one of the first signs of the drastic toll the coronavirus will exact on the economy
• Australia’s government is preparing to scale up fiscal stimulus just days after announcing a A$17.6 billion ($10.8 billion) support package as it seeks to save businesses and jobs
• Asia-Pacific central banks went into crisis mode Monday as the Fed took emergency action, marking a fresh wave of policy coordination
• Latin American central banks are rushing to support their economies and stabilize markets amid pressure to join the U.S. in announcing emergency measures
• Recession in Europe is inevitable as the services economy slumps
• Sweden’s Riksbank said it will escalate QE by purchasing around $30 billion of additional securities on top of its existing program
• Prime Minister Justin Trudeau is significantly restricting the entry of non-residents into Canada and will deny entry to all foreigners, except for Americans. U.K. Prime Minister Boris Johnson urged the public to stay at home

To contact the reporter on this story: Alexandra Veroude in Sydney at averoude4@bloomberg.net

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

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