Senate Stimulus, ECB’s Test, BOE’s Assessment: Eco Day

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

• The U.S. Senate approved a historic $2 trillion rescue plan to respond to the economic and health crisis caused by the coronavirus pandemic, putting pressure on the Democratic-led House to pass the bill quickly and send it to President Donald Trump for his signature
• Eight years after Mario Draghi a tool able to do “whatever it takes” to save the euro, his successor as head of the European Central Bank policy makers are open to activating their most powerful bond-buying tool if needed to help the region’s coronavirus-hit economy once governments lay the groundwork, according to people familiar with its discussions
  • Here’s how it would work
• The Bank of England decision on Thursday may focus more on assessment than action after an unprecedented third meeting of policy makers this month
  • The Czech central bank also has a scheduled rate decision today
• Federal Reserve Chairman Jerome Powell will make a rare televised interview appearance in a Thursday broadcast, as the U.S. central bank deploys an unprecedented array of tools to prevent the health crisis from becoming a financial one
• As global central banks reignite quantitative easing programs or adopt them for the first time, Japan’s key focus of controlling bond yields rather than a quota of purchases is being explored
• Investors will be looking for clues on how soon the Czech central bank may start government bond purchases, with economists predicting another half-point cut in the benchmark interest rate as a foregone conclusion
• Dashed hopes for an Olympic-boost to the Japanese economy are set to transform into an Olympic-jump in government spending following the postponement of the 2020 Tokyo Game

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