Archives of “March 2, 2020” day

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France says virus economic impact will be much bigger than the 0.1% forecast initially

  
  Analysis
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Comments by French finance minister, Bruno Le Maire

  • It is too early to provide a new growth forecast
  • There will be concerted action by the government to support the economy
  • Says G7 finance ministers will speak this week to coordinate efforts
The headline may not sound too pleasant but the initial 0.1% forecast was a bit unrealistic anyway. In any case, more talk of coordinated action by governments across the globe to bolster the economy is definitely a welcome signal for risk to start the week.

Global central bank co-ordinated interest rate cut coming on Wednesday 4 March

  
  Analysis
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A coordinated global interest rate cut by the top central banks will happen this Wednesday, March 4.

  • So says economist for the U.S. bank lobby Bill Nelson, chief economist at the Bank Policy Institute
Nelson, formerly at the Federal Reserve (worked on the Fed’s responses to the 2007-2008 financial crisis):
  • It will happen before the U.S. stock market opens, either 7 a.m. or 8 a.m. ET (1200 or 1300 GMT)
  • It will be half a percentage point at least
  • “The only way to get a positive market reaction is to deliver more than expected”
  • will include “forward guidance”
Here is the link for more: Don’t keep your powder dry
A coordinated global interest rate cut by the top central banks will happen this Wednesday, March 4.
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