China's Baby Steps, Italian Bond Rout, Truce For Now: Eco Day

(Bloomberg) -- Good Tuesday morning, Europe. Here’s news from Bloomberg Economics to help get your day started:

  • Submerging market: The Italian government’s borrowing costs have surged past Indonesia’s as the bond market punishes the nation and its incoming populist coalition
  • Spain’s left-wing firebrand Pablo Iglesias is under fire for hypocrisy as his high-end real estate holdings run up against his criticisms of other Spanish politicians
  • Detente, for now. Tempers are still cooling around U.S.-China trade disputes, and keeping the peace with North Korea might have a lot to do with it
  • China is poised to scrap all limits on how many children a family can have, in a move meant in part to address labor shortages in the second-largest economy -- though Bloomberg Economics warns that the short-run growth impact could be negative
  • Clock ticking. A revision to the Nafta deal is running up against an end-May deadline, but it’s still unclear whether the three parties will beat it, with disagreements over autos lingering
  • Damping momentum. India’s growth is being hampered by rising oil prices and interest rates even as rural areas stage a comeback, Bloomberg Economics analysis shows

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