Worst Since 2009, Central Banks Warned, China at Work: Eco Day

(Bloomberg) -- Welcome to Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend:

• The world economy may be heading for its worst performance since the financial crisis as the spread of the coronavirus increasingly dashes hopes of a swift rebound
• Investors don’t see central banks’ wait-and-see approach to coronavirus lasting -- even as Chicago Fed chief Charles Evans said it might take several months to judge the impact and the ECB’s Christine Lagarde says she doesn’t currently see the need for a response
• China continues to crawl back to work, but still has a long way to get to previous levels of activity. The economy is running at 60-70% of its normal level, up from 50-60% a week ago, writes David Qu
• Sometimes the caveats need to come ahead of the conclusions, writes chief economist Tom Orlik
• Malaysia, in the grip of a leadership battle, announced a package of measures to counter the coronavirus, while Australia’s prime minister signaled ‘targeted’ stimulus and Germany is also looking at a range of measures
• Just as India’s economy starts to show signs of a recovery, the threat from the coronavirus looms
• Underlying demand in the U.S. economy was slower than initially reported at the end of last year, putting growth on a weaker footing ahead of coronavirus risks
• Boris Johnson’s threat to walk away from Brexit negotiations carries a heavy price tag for the economy. Meantime, BOE Chief Economist Andy Haldane sees U.K. companies unleashing spending with a boost from an expansionary budget and clarity over Brexit
• Mark Carney and Christine Lagarde are pushing investors to take the climate crisis seriously and ensure they’re considering the risks from emissions and higher temperatures
• The transition to a low-carbon world may create more wealth for investors than the industrial revolution, which paved the way for today’s fossil fuel-dependent economy

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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