Day: March 6, 2020

Global FX

Global growth shaken, central banks stirred

The drastic measures which governments across the world have taken so far to mitigate the spread of the coronavirus have few precedents outside of war times and therefore quantifying their economic, financial and social impact remains challenging.

However, there is little doubt that economic activity in China, the epicentre of the epidemic, has slowed sharply.Read the rest

Brazil

BRAZIL: Presidential dual rhetoric to continue to delay reform effort

President Jair Bolsonaro’s capacity to operate in two ostensibly conflicting worlds – that of social media and his own government – reached a high point this week. Bolsonaro has been as erratic as ever, resorting to confusing doublespeak. The net result is further delays in the reform effort as Congress spends more time reacting to provocations than to pushing forward its ambitious agenda in the short window of opportunity that extends to mid-year when all politics veers towards the October municipal elections.… Read the rest

Europe

ITALY: Political impact of Covid-19 will materialize after the crisis

Italy is struggling to halt the spread of Covid-19 that has killed 148 people and infected 3858 individuals (as of 5 March at 6pm local time). The data released on 5 March by the authorities indicated that the number of infected increased by almost 600 individuals over the previous 24 hours – the most significant intraday increase since the outbreak was detected.… Read the rest

Politics

SOUTH KOREA: Moon struggles despite nimble response to outbreak

Despite responding to the widening COVID-19 outbreak with an efficient and large-scale testing program and effective containment measures, South Korean President Moon Jae-in still faces public criticism for his handling of the outbreak.
The political risks from the outbreak are particularly salient for Moon, who faces national legislative elections in April.… Read the rest