Remaining 2020 Risks, China Exports, Italy Power Play: Eco Day

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

• The world economy’s rebound from the depths of the coronavirus crisis is fading, setting up an uncertain finish to the year
• European Central Bank policy makers discussing this week how to set monetary policy for their disease-stricken economy will do so in the shadow of their U.S. counterparts
• German manufacturers ramped up production for the third straight month, though the pace of growth slowed considerably in July
• The U.K. is stepping up preparations for Brexit trade talks to fail, as time runs out for reaching a deal
• China’s exports continued to expand in August, as the country’s major trading partners gradually resumed business activities. Bloomberg Economics’ David Qu writes that the headline exports reading likely overstates the recovery in external demand
• Italian Prime Minister Giuseppe Conte made it clear to the country’s corporate elite that he’ll be calling the shots more often in a pandemic-stricken economy. Conte and cabinet members showed up in force over the weekend at a gathering of financial and company leaders
• China is returning to its stimulus playbook, with local governments borrowing a record amount to spend on infrastructure this year to drag the economy out of its coronavirus- induced slump
• Italy’s economy will rebound more powerfully than expected in the third quarter after suffering one of Europe’s toughest lockdowns, Finance Minister Roberto Gualtieri said
• Yoshihide Suga, the frontrunner in the race to become Japan’s next prime minister, is widely seen as a continuity candidate, but his past statements suggest he is a reform advocate who could shake up some of the country’s cozier industries
• President Donald Trump “couldn’t be more pleased” with how the recovery is progressing but wants more stimulus to move ahead, U.S. Treasury Secretary Steven Mnuchin said
• Australia’s central bank will boost its bond-buying program or cut interest rates to help spur a recovery, economists predict. Meantime, James McIntyre runs the ruler over the economy’s outlook to 2050

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