Morgan Stanley warned traders on Tuesday that the coronavirus pandemic is basically disrupting the world's economic system.

"International recession in 2020 is now our base case," Morgan Stanley chief economist Chetan Ahya wrote in a word. "With Covid-19 spreading in Europe and the US after hitting Asia, the disruptions and dislocations within the economic system and markets will set off a [year over year] contraction in international progress in [the first half of 2020]."

Morgan Stanley believes the U.S. authorities is endeavor a "sturdy financial and monetary coverage response" that "will assist revive international progress" within the third quarter of this 12 months. However, general, Ahya mentioned international financial progress will gradual to 0.9% this 12 months, "the bottom for the reason that international monetary disaster." The agency's base case for international progress is -0.3% within the first quarter, -0.6% within the second quarter, 1.8% within the third quarter and a pair of.5% in fourth quarter.

"This time will likely be worse than the worldwide recession of 2001. Whereas...