Carney’s Luck, Italy Risk, ECB’s Climate Test: Eco Day
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Welcome to Thursday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help start your day:
- Mark Carney said he’s lucky he never had to cut interest rates below zero as Bank of England governor because that would have damaged the U.K.
- Italy risks missing its already unambitious growth targets for 2020 because of the coronavirus outbreak, according to a senior government official
- The European Central Bank is testing just how far it can go in fighting climate change
- Prime Minister Shinzo Abe should act first, not the central bank, if the coronavirus outbreak inflicts severe economic damage on Japan’s economy, according to one of Abe’s economic advisers
- China’s Politburo meeting suggests it’s shifting the policy focus from virus control to economic support, writes David Qu. The body urged the nation to meet its economic targets even amid the pressure from the epidemic
- Economists are turning more pessimistic over the chances of a speedy recovery for China’s virus-hit economy, as evidence mounts that the disruption will be deeper and more long-lasting
- The Federal Reserve will be forced to use large-scale asset purchases “aggressively” in a downturn, Chairman Jerome Powell told lawmakers. Republican and Democratic senators urged Powell to defend the independence of the central bank, a bipartisan show of support after President Donald Trump renewed his public assault
- The U.S. is weighing a plan to increase its long-standing ceiling on tariffs in a move meant to trigger a renegotiation with fellow WTO members and step up its assault on the global trading system
- Serbian monetary policy makers appear to be running out of room to surprise markets
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