EU Rescue, Fed Yield Target, Hong Kong Autonomy Revoked: Eco Day

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

• The EU’s ambitious recovery spending plan -- anchored by 750 billion euros ($825 billion) of joint debt issuance -- has started to calm markets and could restore a sense of unity to the bloc
• Slowly but not surely, the world economy is emerging from its coronavirus-enforced hibernation
• The Trump administration said it could no longer certify Hong Kong’s political autonomy from China, a move that could trigger sanctions and have far-reaching consequences on the former British colony’s special trading status with the U.S. China’s parliament later approved new national security legislation for the city
• Germany and France stand out in terms of the pace of recovery. Japan, which is managing its outbreak with relatively light lockdown controls, is also doing better than most, Bjorn van Roye writes
• After rolling out unprecedented support for the economy in the face of the Covid-19 pandemic, Poland’s central bank is poised for a breather
• New York Fed President John Williams said policy makers are “thinking very hard” about targeting specific yields on Treasury securities as a way of ensuring borrowing costs stay at rock-bottom levels
• The coronavirus has deeply damaged the U.S. economy, with “steep” job losses and business closures, a new Fed report said
• At least 49 million people across the world are expected to plunge into “extreme poverty” as a direct result of the pandemic’s economic destruction. India’s citizens will be worst hit.
• The global economy could be in for a bumpy ride as lockdowns tied to the Covid-19 pandemic begin to ease, Goldman Sachs President John Waldron said
• Central banks must be careful that their extraordinary measures to combat the coronavirus pandemic don’t morph into improper government financing, according to two former policy makers.
• German Chancellor Angela Merkel said the EU has a “great strategic interest” in maintaining cooperation with China in the face of a widening list of grievances with the government in Beijing
• The coronavirus outbreak is hitting the young “harder and faster than any other group,” with a risk of scarring them for their working lives, according to the ILO. However, global hiring is stabilizing

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With assistance from Bloomberg