SocGen Says Coronavirus Impact May Affect Entire Year

Allen Bokassa from Societe Generale discusses the market's reaction to virus data, emphasizing the importance of stabilizing infection numbers. He highlights the economic impact on Q1 and Q2, with potential recovery shapes like V, U, or L. Bokassa also discusses policy responses, including monetary and fiscal measures, and the expectations from policymakers to manage the economic downturn.

What is the primary focus of the market in response to the virus data?

• The geographical spread of the virus

• The number of recovered patients

• The number of deaths reported

• The daily reporting of infection numbers

Which region is expected to be more impacted by the virus in Q1?

• United States

• South America

• Europe

• Africa

What are the potential shapes of economic recovery discussed?

• A-shaped, B-shaped, or C-shaped

• V-shaped, U-shaped, or L-shaped

• W-shaped, Z-shaped, or S-shaped

• X-shaped, Y-shaped, or Z-shaped

What is the expectation from policymakers in China regarding economic recovery?

• A broad array of policy tools

• No intervention is expected

• Only fiscal policy measures

• Only monetary policy measures

How might the nature of reflation differ between the US and Japan?

• Both countries will use the same policy tools

• The US might use monetary policy, while Japan uses fiscal policy

• Neither country will use any policy tools

• The US might use fiscal policy, while Japan uses monetary policy