Oil Crash Disinflation, ECB Debt Call, U.K. Cod Craving: Eco Day

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

• The historic collapse in oil is inflicting another shock on a weakened world economy, creating a disinflationary risk for some and severely denting budgets in producers
• European Central Bank policy makers will hold a call Wednesday evening where they may discuss whether to accept junk-rated debt as collateral from lenders, according to officials familiar with the matter
• These are the grim economics of the pandemic: Younger workers get paid again if everyone goes back to work, but older Americans are more likely to die from spreading infection, according to researchers at the Federal Reserve Banks of Kansas City and Minneapolis
• The U.K.’s import reliance is testing the national craving for cod. Meanwhile, the country’s bond market could face a flood of bond sales that dwarfs the record for government borrowing set during the global financial crisis
• The U.S. budget deficit may quadruple this year to almost $4 trillion. By 2023, U.S. debt held by the public is set to surpass records set in the post-World War II years
• Turkey will likely lower interest rates for an eighth time in less than a year, as a central bank unfazed by the lira’s steep decline looks to spur credit
• The Bank of Japan has long tried and failed to hit its target of 2% annual inflation but the topic has faded from conversation amid coronavirus, possibly marking a lasting shift in priorities
• A global environment turning less conducive to trade and technology flows means China’s road to higher productivity will get bumpier, Qian Wan writes
• America needs real-time economic data to get through this crisis and has put its faith in statistics. But the numbers are failing it this time, Shawn Donnan writes
• The meltdown in oil markets is turning back the economic clock for Saudi Arabia, putting it on track for a deep contraction
• The twin blows of coronavirus and the oil-price collapse could wipe more than 5% off the Russian economy this year -- and may prove even more devastating for hundreds of thousands of small businesses

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