European Stimulus,Trump’s Announcement, Deflation: Eco Day

(Bloomberg) -- Welcome to Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get you through to the weekend:

• The guardians of the European Union’s new 750 billion-euro ($827 billion) recovery plan will have to avoid some pitfalls to ensure their show of unity is a success.
• The European Central Bank will step up emergency asset purchases next week to haul the economy out of its much deeper than originally anticipated slump, according to a Bloomberg survey of economists
• President Donald Trump said he’ll announce new U.S. policies on China on Friday. His top economic adviser said Beijing would be held accountable for its actions on Hong Kong. With Trump and Xi Jinping both focused on domestic support, the bottom is falling out of U.S.-China relations and the fresh political turmoil engulfing Hong Kong in recent days is reviving worries over capital outflows
• German Chancellor Angela Merkel is preparing a second phase of stimulus of between 50 billion and 100 billion euros to turbo-charge the economy’s recovery from the virus crisis
• It’s safer for the Bank of England to ease too much rather than too little as it responds to the pandemic, policymaker Michael Saunders says
• The Covid-19 shock could spur an acceleration in global inflation driven by the stimulus or a spell of deflation as demand craters. Japan’s experience suggests the latter is the bigger risk
• From call centers to hotels to airlines, India’s key services industries have come to a standstill during the coronavirus outbreak, dragging the economy into possibly its worst recession on record
• China’s economy can grow this year if the key tasks set out by the government, including ensuring employment and people’s livelihoods are achieved, according to Premier Li Keqiang. Here’s what we learned from the annual policy meeting which ended Thursday
• The coronavirus pandemic is worsening U.S. inequality along income and racial lines, Philadelphia Fed chief Patrick Harker said
• The White House won’t issue a formal economic forecast showing the extent of the U.S. downturn precipitated by the coronavirus pandemic
• A 70,000 year view on the coronavirus crisis (Podcast)
• The U.S. trade war with China cut $1.7 trillion from the market value of listed American firms and will reduce their investment growth rate by almost 2 percentage points by year end, a study finds

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With assistance from Bloomberg