G-7 Call, Australia Cuts, Tracking the Virus in Data: Eco Day

(Bloomberg) --

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• Bank of England Governor Mark Carney said international policy makers are crafting a “powerful and timely” defense of the world economy against the spreading coronavirus ahead of an emergency G7 conference call
• The response has already started in some countries, with Australia’s central bank cutting its key interest rate by a quarter percentage point to a record low 0.5% on Wednesday, and Malaysia also easing policy
  • Here are the other rate cuts traders expect, starting with the Bank of Canada later today
• The pain from weeks of stalled output in China is starting to appear in dramatic hits to global trade data
  • Bloomberg Economics is downgrading its forecast for growth, and anticipates larger spillovers to other major economies
  • Meanwhile, here’s how the virus will show up in U.S. economic indicators
• Governments struggling to contain the global economic fallout from the virus face mounting calls to unleash a major fiscal stimulus that could help cushion the blow
• The upheaval from the outbreak may be the final jolt that the world’s biggest companies need to reevaluate how they operate in a globalized economy, the OECD’s chief economist Laurence Boone said.
• Andrew Bailey, who becomes Bank of England governor in less than two weeks, is set to make the first public appearance connected to his new role on Wednesday
• Analysts see Japan falling into a deeper recession as data starts to show just how serious the virus’s impact will be for the world’s third-largest economy

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Fergal O'Brien

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