G7 emergency telephone summit! "Attention points and event schedule for March 16"

Last weekend, President Trump declared a state of emergency and announced extensive fiscal stimulus, which caused stock prices to rebound, but U.S. shares fell again as travel bans from the UK and Ireland were added.

In Europe, measures such as Germany closing borders with five neighboring countries are proceeding, reflecting tightening responses across nations.

To respond to this situation, the Fed held an emergency FOMC meeting, cutting rates by 1.0% and reactivating quantitative easing, and the RBNZ (New Zealand Central Bank) announced an emergency rate cut of 0.75% as well.

Central banks in Japan, the U.S., Europe, the UK, Canada, and Switzerland agreed to provide coordinated dollar funding.

With emergency policy statements emerging from six central banks starting Sunday, sudden market moves have increased volatility.

◎ Today’s Highlights

1) Emergency Policy Responses by Countries

Last weekend, the Bank of Canada announced a 0.5% emergency rate cut, and this morning the FOMC cut rates by 1.0% and resumed QE; the RBNZ (Reserve Bank of New Zealand) announced a 0.75% emergency rate cut.

The FOMC held its meeting earlier than scheduled on the 19th to announce the cut.

Thus, many central banks are taking emergency actions.

It is unclear how the Bank of Japan and Switzerland will move, but it appears central banks are doing everything they can.

With central banks making these announcements, the next focus shifts to fiscal stimulus by each country.

Today, a G7 emergency phone (video) summit will be held.

Attention is on what policies each country will propose and what cooperative policies may come out of the G7.

Also, we will be watching whether the policies that emerge help curb stock declines and alleviate anxiety.

2) State of Emergency Declarations

Over the weekend, the U.S. extended a travel ban from Europe to include the United Kingdom and Ireland.

Spain declared a state of emergency, and Germany began closing borders with five neighboring countries, taking emergency measures; various countries are acting with urgency.

Additionally, ministers, national leaders, and other government officials are among those infected with the coronavirus.

To suppress the spread of the virus, restrictive measures are expanding and economic activity is declining.

We are watching how far this situation will spread, where the next travel bans and border closures will be, and which country will declare a state of emergency.

◎ Today’s Event Schedule

March 16 (Monday)

Eurozone Finance Ministers’ Meeting

G7 Emergency Leaders’ Summit (Video Conference)

11:00 CNY China industrial production

19:00 EUR Italy HICP (Consumer Price Index)

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