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Trump’s Shut Down, Germany’s Help, Japan’s Warning: Eco Day

Trump’s Shut Down, Germany’s Help , Japan’s Warning: Eco Day

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

  • German officials are ready to help Italy get through the coronavirus pandemic and are prepared to support an emergency loan from the euro area’s bailout fund
  • Continental Europe’s labor-market model is experiencing rare praise from economists because it may help prevent massive job losses during the coronavirus pandemic
  • The Bank of England’s new 200 billion pounds of bond purchases has the potential to hit the market at a faster pace than currently advertised
  • Hungary will probably join the stampede of countries around the globe whose central banks are loosening monetary policy to confront the economic impact of the coronavirus
  • President Donald Trump said the American economy can’t remain slowed for too long to fight the coronavirus, declaring that the country “was not built to be shut down.” Economists say the U.S. is entering a sharp recession, with some projecting gross domestic product is headed for its worst drop in quarterly records back to 1947
  • Bloomberg Economics sees global recession in the first half of 2020 and a recovery emerging in the second. The recession is certain; the recovery forecast is on shakier ground, writes Tom Orlik
  • The International Monetary Fund said it expects a global recession this year that will be at least as bad as the downturn during the financial crisis more than a decade ago, followed by a recovery in 2021
  • Activity in Japan’s economy shrank sharply in March
  • Chinese companies had their worst quarter on record, with every individual sector reporting worse results in the first three months of this year, according the China Beige Book
  • South Korea announced measures to stabilize financial markets, including bond, stock support funds
  • The U.K. will go into lockdown after Boris Johnson ordered sweeping measures to stop people leaving their homes “at this moment of national emergency”
  • New Zealand’s central bank has further relaxed capital rules for local banks so they can help home owners and small businesses through the looming recession

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