G-7 Response, Australia Cuts, U.S. Discussing Steps: Eco Day

(Bloomberg) --

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

• European Central Bank President Christine Lagarde belatedly joined the crowd of leading central bankers pledging to take action, if needed, against the economic damage from the coronavirus outbreak
• 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
• 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 Group of Seven is working on steps to counter the virus’s impact, Reuters reports, but a draft statement is silent on coordinated interest-rate cuts
• Global policy makers sought to reassure markets that they’re ready to respond to the disease outbreak, as fears mount that its spread could push the world economy toward recession. Australia’s central bank cut rates and signaled it’s prepared to ease further to cushion the blow from China’s slowdown and coronavirus fallout
• 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
• The pain from weeks of stalled output in China, the world’s second-largest economy, is starting to show up in dramatic hits to global trade data. The coronavirus threatens to plunge China’s economy into contraction, sending shock waves around the world. Bloomberg Economics is downgrading its forecast for growth, and anticipates larger spillovers to the region and other major economies
• President Donald Trump’s administration is discussing a series of steps to contain the fallout from the virus, including a push for the Federal Reserve to enact an emergency rate cut and a possible tax reduction

To contact the reporter on this story: Anirban Nag in Mumbai at anag8@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Karthikeyan Sundaram, Tuhin Kar

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