Outside of the coronavirus political /.....>

EUROZONE: Outside of the coronavirus political / fiscal response and case

updates, the ECB will be closely watching two data releases today.

- First, an unprecedented preliminary German IFO survey estimate. Tuesday's ZEW

was the first EZ survey since Covid-19 spread to Europe and saw expectations

plunge from +8.7 to -49.5. To put this in context, since the mid-1990s we have

only seen lower readings between May-November 2008 and November-December 2012.

However, many of the survey participants are related to financial markets or

watch the DAX closely so we often prefer to focus on other surveys. The IFO, by

contrast, surveys 10,000 German firms so will be a much better gauge of how the

real economy is faring in Germany. This survey is due for release at 9:00GMT.

- Second, the ECB will announce the allotment details of the TLTRO III operation

at 10:30GMT. Recall that the ECB eased the conditions on the TLTROs as part of

its policy response last week. Counterparties will now be able to borrow 50% of

their stock of eligible loans (instead of 30%) while the interest rate will fall

to -0.75% (25bp below depo rate). The ECB will be hoping for a decent take-up or

will be under pressure to deliver further easing.