Europe’s Supply Chains, Johnson’s Plans, Chinese Data: Eco Day

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

  • European leaders talk of shortening supply chains and curbing China’s “Belt and Road” plan. But on the ground in Italy, Gimmi Baldinini says his designer footwear company is in no position to cut ties with the Chinese
  • Boris Johnson will commit to spending on infrastructure to rebuild the coronavirus-ravaged U.K. economy in a major policy speech Tuesday and say that balancing the books must wait until recovery is secure
    • Britons responded to the coronavirus crisis by slashing spending and saving more as the economy slipped into what may be the deepest slump in at least a century
  • Latvia, a European Union and euro-area country of just 1.9 million people, hit the headlines in recent years for the piles of dirty money sloshing around its banks. A crackdown has ended much of the illegal activity, but some more old-fashioned methods of moving money persist
  • Norway’s fight against Covid-19 is proving one of the most effective in Europe, writes Johanna Jeansson. The government shut down the economy quickly and ramped up testing to contain the virus. It offered plenty of fiscal support to workers and businesses hit by the lockdown and it’s now set to recover at a “surprising” speed
  • French Finance Minister Bruno Le Maire proposed splitting off the debt piled up as a result of emergency spending to tackle the coronavirus and spreading out repayments over years
  • A gauge of China’s manufacturing activity climbed in June, signaling the country’s gradual recovery from the coronavirus slump remains on track. Meanwhile, China’s purchases of U.S. goods increased last month as the economy continued its recovery from the coronavirus shutdowns, but imports are still far behind the pace needed to meet the terms of the ‘phase one’ trade deal
  • Federal unemployment benefits have been especially vital for Black Americans, who’ve suffered some of the worst job losses in the pandemic. That argument is helping to sway some in Congress toward keeping the extra payments in place after next month’s deadline
  • Japan’s industrial production fell again in May and unemployment rose even as a nationwide state of emergency was lifted, showing the severity of the pandemic’s impact on the export-reliant manufacturing sector and the wider economy

©2020 Bloomberg L.P.

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