Central Banks’ Crazy Week, Stuffed Warehouses, BOE Cuts: Eco Day

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

• As a tumultuous week draws to an end, an unprecedented 31 central banks have slashed interest rates over the past five days -- and many of them have gone further, activating the crisis playbook to deal with the challenge from coronavirus
• Global warehouses are stuffed with food but as coronavirus snarls logistical operations, how do all those cuts of pork, wheels of cheese and bags of rice actually get to people?
• The ECB can’t stop the euro-area from sliding into recession, but it may be able to prevent another debt crisis. Government bonds surged after the ECB launched a 750 billion euro ($810 billion) debt-buying program -- even as some policy makers worry they might be forced to raise limits on how much debt the ECB can hold. Christine Lagarde said the bank “will do everything necessary” to protect the euro-area economy, including expanding on the emergency stimulus.
• The Bank of England cut interest rates to a record-low 0.1% and added 200 billion pounds ($230 billion) to its asset-purchase program
• In Germany, Angela Merkel’s government is considering declaring a state of emergency, which would permit unlimited borrowing to help stem coronavirus fallout. Another rate cut can’t be ruled out in Poland, which just lowered rates for the first time in five years
• U.S. congressional leaders raced to draft legislation for the next virus-related rescue plan, while the Trump administration pushed Congress to pass a massive stimulus by Monday. That comes as filings for U.S. unemployment benefits are poised to surge to a record 2.25 million this week, according to Goldman Sachs
• A canceled or postponed Olympics would likely result in Japan’s economy shrinking for the longest stretch since the financial crisis
• The IMF’s new top deputy, a veteran of President Trump’s trade negotiations with China, officially joined the global policy response to the pandemic

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