Parts of financial markets are pricing in a global recession
CNNLondon CNN Business — A version of this story first appeared in CNN Business’ Before the Bell newsletter. But it warned Friday that “larger revisions may be required” if shutdowns related to the coronavirus drag on, or “if more draconian actions are needed in the event of a global pandemic.” “Our scenarios suggest that the latter could push the global economy into a deep recession,” said Ben Mays, the firm’s director of global macro research. It won’t help The Federal Reserve’s emergency interest rate cut last week did little to soothe jittery markets on edge about the coronavirus epidemic. Interest rates aside, Lagarde may find it difficult to expand the ECB’s bond-buying program, which is controversial among some members of the central bank’s governing council. “We disagree with central bank pronouncements that there is room to fight the crisis.” Up next Monday: Stitch Fix earnings Tuesday: China inflation data; Dick’s Sporting Goods earnings Wednesday: OPEC monthly report; UK budget released; US inflation data; Luckin Coffee earning Thursday: European Central Bank interest rate decision; Dollar General, Broadcom, Gap and Slack earnings Friday: University of Michigan consumer sentiment survey