Big Economic Reads: Virus Spread Unnerves Global Central Bankers

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The spread of the coronavirus continued to unsettle central bankers and other observers of the world economy.

That’s the main topic in our collection of this week’s analysis, scoops and enterprise from Bloomberg Economics:

• Virus ‘Wildcard’ Threatens to Drag Central Banks Into Action
• Charting the Global Economic Impact of the Coronavirus
• Virus Jolts China Economy, Forcing Rethink on Almost Everything
• Forecasts of a Quick Recovery From Coronavirus May Be Premature

Enda Curran reported how central bankers are eyeing the virus with wariness, although few have acted to shield their economy, with Thailand an exemption. Bloomberg Graphics showed the fallout from the health crisis and Bloomberg reported that China may cut its growth target and seek some slack from the U.S. regarding its recent trade deal.

• Trump Mulls Quitting the WTO’s $1.7 Trillion Purchasing Pact
• U.S. Crackdown on Chinese Stocks Hasn’t Been Ruled Out Yet
• Trump Administration Clears Way for New Currency Tariffs
• Swiss Risk Repeat of History as Trump Sets Sights on Europe

Donald Trump’s multi-fronted trade war rattles, on with Bryce Baschuk reporting how the U.S. may withdrawl from a global deal on government contracts. Jenny Leonard and Sridhar Natarajan revealed that the White House has still not ruled out limiting Americans’ investment in Chinese companies. Still, Bloomberg also reported that the Chinese officials are hoping the U.S. will agree to some flexibility on pledges in the recent interim trade deal, given the virus.

• With Brexit Done, Trump Sets Himself Up to Be Disruptor Again
• Boris Johnson Runs Up Against His Red Wall in Escape from EU

Trump may also play a disruptive role as U.K. Prime Minister Boris Johnson starts to negotiate a new post-Brexit trade deal with the European Union, Shawn Donnan and Jenny Leonard reported. Meantime, Joe Mayes showed how Johnson’s recent election victory poses some challenges to those negotiations.

• Mexico’s Fine Art of Hiking Taxes That Hopefully No One Notices
• As a $311 Billion Debt Bomb Ticks, Inklings of a Plan Emerge

Eric Martin and Andrea Navarro reported how Mexico’s government is trying to raise taxes without people noticing, while Patrick Gillespie outlined Argentina’s strategy for dealing with its debt burden.

• See One Ordinary Day in an Extraordinary Global Economy
• Vietnam is Collateral Damage as U.S. and China Battle Over Trade
• Trade Is More Important to Germany’s Economy Than to China’s

The current edition of Bloomberg Markets magazine is devoted to trade so check out some of the contributions including postcards from around the world depicting an ordinary day for an extraordinary world economy.

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