Rescue to Recovery, China Budget Hole, Italy’s Luck: Eco Day

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

• The world’s governments and central banks are shifting from rescue to recovery mode as the deepest slump since the Great Depression shows signs of bottoming out
• Bloomberg Economics has pulled together a number of high frequency, alternative, and market measures to provide a timelier read on the depth of the downturn -- the overall picture looks less bleak than it did a few weeks ago
• Prime Minister Boris Johnson is finalizing plans to ease the U.K.’s lockdown and rebuild the economy, aiming to backstop support for his government’s response to the coronavirus crisis
• China’s plan to ramp up spending to support the economy is meeting an inevitable challenge: a slump in income due to the pandemic-induced downturn
• Italy might just be succeeding yet again in shaking off a crisis without having to confront the failings of its economy
• China’s trade surplus surged to a record in May as exports fell less than expected, helped by an increase in medical-related sales
• America’s labor market defied forecasts for a Depression-style surge in unemployment, signaling the economy is picking up faster than anticipated amid reopenings and government stimulus. Yet, an ugly summer still looms
• Japan’s economy shrank less than initially estimated in the first quarter, but analysts warn the latest revised figures likely offer a distorted view of the economy’s health
• New Zealand will remove social distancing requirements after reporting zero active cases of Covid-19, indicating it has achieved its aim of eliminating the virus
• Here is our wrap of what’s coming up in the world economy this week

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