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EU’s Centeno says he expects finance ministers to agree fiscal measures “much larger” than €27bn

  
  Analysis
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Financial Times with the report on a prediction from Mário Centeno, President of the Eurogroup

  • Eurozone finance ministers will agree a “very large” policy response to fight the economic fallout of coronavirus, the president of the eurogroup has predicted
  • bloc will unleash the “full flexibility” of its budget rules to boost spending
  • expected fiscal measures that together add up to a boost “much larger” than the €27bn aggregate level that was mentioned by Christine Lagarde
Centeno speaking with the FT Link 

IMF on coronavirus and the global economy – damage this year; sharp, rapid rebound

  
  Analysis
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Comments from International Monetary Fund managing director Kristalina Georgieva over the weekend on the impact on the global economy

  • could damage global economic growth this year
  • a sharp and rapid economic rebound could follow
  • “There may be a cut that we are still hoping would be in the 0.1-0.2 percentage space”
  • full impact of the spreading disease would depend on how quickly it was contained – “I advise everybody not to jump to premature conclusions. There is still a great deal of uncertainty. We operate with scenarios, not yet with projections, ask me in 10 days”
  • If the disease is “contained rapidly, there can be a sharp drop and a very rapid rebound”, in what is known as the V-shape

Watch: ECB president Christine Lagarde’s press conference at 1330 GMT

  
  Analysis
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All eyes on Lagarde now

The ECB statement was a non-event as expected, with the language on inflation and policy kept similar to the December meeting.

The ECB did officially announce its first strategic review in nearly two decades though and has taken some of the heat away from Lagarde ahead of her press conference; they say that they will provide further details on the scope and timetable later today at 1430 GMT.
As such, the focus of Lagarde’s press conference will be more skewed towards her tone and view on recent changes to the economic outlook i.e. improving data and the US-China trade deal – unless of course she decides to chime in on strategic review questions.
You can watch her live later here:

A quick glance at the key risk events in markets this week

  
  Analysis
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It is going to be an eventful week in markets despite the slower start today

Let us take a look at what else is on the agenda:

Tuesday, 10 December
– RBA governor Philip Lowe speaks at the AusPayNet Summit in Sydney
– China November CPI data
– Germany December ZEW survey current conditions, expectations
Wednesday, 11 December
– US November CPI data
– FOMC December monetary policy meeting & Fed chair Powell press conference
Thursday, 12 December
– UK general election
– SNB December monetary policy meeting
– ECB December monetary policy meeting & ECB president Lagarde press conference
– BOC governor Stephen Poloz speaks about the Canadian economic outlook for 2020
Friday, 13 December
– US November retail sales data
Sunday, 15 December
– Deadline before US tariffs on $156 billion of Chinese goods go into effect
These will be the key ones to pay attention to but there will also be other smaller data releases during the week that will also have some say to the ebb and flow of things.
As such, fret not about the lack of meaningful moves in markets so far today. Things will surely heat up over the next few days.
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