Friday 13th March 2020
Markets are in free fall as containment measures impact heavily on business, not least President Trump’s ban on visitors from mainland Europe. Central banks are doing what they can – not much in the case of the ECB – but the focus is on the inaction of governments to provide sufficient stimulus. NAB’s Gavin Friend says that the UK, at least, has had a coordinated approach, whilst the US argues politics and the Eurozone largely fails to respond. Even where action is being taken, Phil Dobbie asks whether the injections are enough. As Christine Lagarde commented, spending pledges from Eurozone governments amounted to just €27 bililon – just 0.25 percent of GDP. Does that seem a realistic response to such a massive global crisis?