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ECB Deflation Fears, China Supply Grip, Digital Dash: Eco Day

ECB Deflation Fears, China Supply Grip, Digital Dash: Eco Day

(Bloomberg) -- Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • Deflation is back on the minds of European Central Bank officials, presaging battles for President Christine Lagarde over whether the euro zone needs yet more monetary stimulus
    • Speaking to lawmakers in the European Parliament, Lagarde signaled ECB is willing to play a more active role in responding to a critical ruling by Germany’s constitutional court over its monetary policy
  • The trade war amplified calls in the U.S. and elsewhere for reducing dependence on China for strategic goods. Now, the pandemic has politicians vowing to take action
  • French economic output will take two years to recover from the virus-related slump that that will inflict even longer lasting damage on the labor market, the country’s central bank said
  • In Spain and other parts of the continent, the coronavirus outbreak has accelerated what had been a hesitant embrace of e-commerce
  • The scale of the coronavirus’s impact on U.K. consumers is becoming clearer just as the lockdown is starting to ease
  • Bank of Israel is adopting high-frequency data to keep up with crisis
  • The U.K. and Japan start trade talks Tuesday, aiming to replace the free-trade agreement that Britain currently enjoys with the country through the EU
  • The global economy will contract the most since World War II this year and emerging nations’ output will shrink for the first time in at least six decades due to the Covid-19 pandemic, the World Bank said
  • The shock of Friday’s U.S. jobs report is still rippling through economic circles, politics and financial markets. Beyond how economists flubbed the forecasts, the report has spurred many other questions. Here, we try to answer some of them
  • The U.S. recession will prove to be in the rearview mirror only if policy stays the course, writes Andrew Husby

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