U.S. Stimulus, Joint EU Debt, SNB’s Franc Dilemma: Eco Day

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

• The Trump administration is discussing a plan that could amount to $1.2 trillion in spending, including direct payments of $1,000 or more to Americans. But those checks won’t be enough to stop a recession. Treasury Secretary Steven Mnuchin raised the possibility that U.S. unemployment could rise to 20% because of coronavirus
• Think of a number, then double it: That’s more or less what Wall Street is telling governments drawing up emergency spending plans
• German Chancellor Angela Merkel said she’s ready to consider joint debt issuance to help contain the impact of the coronavirus, an opening that could transform EU finances. Meanwhile, a drop in demand for European Union carbon allowances suggests that industrial use of energy may be falling off
• China is estimated to be operating at 80%-85% of its normal level now. Bloomberg Economics is lowering its 1Q GDP forecast to an 11% contraction, and expects full-year growth of just 1.4%, Chang Shu writes
• With the Swiss franc at a five-year high against the euro and the economy facing the fallout from the coronavirus pandemic, pressure is growing on the Swiss National Bank to cut interest rates at its meeting Thursday
• Turkey’s central bank cut borrowing costs by a full percentage point and announced a series of measures to boost liquidity amid the virus outbreak, pushing its inflation-adjusted interest rates near the world’s lowest
• Boris Johnson’s government announced a massive rescue package of loans and grants for businesses facing the coronavirus pandemic. Meanwhile, France is ready to use the ultimate weapon to protect its biggest companies from the market turmoil: nationalization
• The Federal Reserve will restart a crisis-era program to help U.S. firms borrow using commercial paper after the market came under “considerable strain.” Europe’s central banks will give lenders cheap access to dollars
• The number of Norwegians seeking unemployment benefits jumped by a staggering 128% in just a week as the spread of the coronavirus brings the richest Nordic economy to a near standstill
• Moving ahead with the Olympics in Tokyo would be “insensitive and irresponsible,” according to Canadian ice hockey player and International Olympic Committee member Hayley Wickenheiser

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