Rising Inequality, ECB Accepting Junk, More Aid to Come: Eco Day

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

  • Global governments have dedicated more than $8 trillion to fight the coronavirus pandemic, but a further widening in the gap between rich and poor countries threatens to exacerbate the global economy’s pain.
  • The ECB will accept some junk-rated debt as collateral for its loans to banks in a move that aims to shield the euro area’s most vulnerable economies as they face the risk of credit downgrades
  • Confidence among European businesses and consumers is in free fall as shutdowns to contain the coronavirus push the economy into recession
  • The effect of the U.K.’s emergency spending to combat coranavirus began to show up in public finance data for March, as a jump in spending caused the budget deficit to widen more than expected
  • The Trump administration is already turning its focus on the next round of stimulus, with the House poised to pass a $484 billion package on Thursday. House Speaker Nancy Pelosi wants aid for state and local governments
  • Filings for U.S. unemployment benefits will continue to flow near a record pace. The latest dip likely reflects the holiday-shortened week. Meanwhile, a survey of job loss fear surges to 45-year high
  • South Korea’s virus-hit economy suffered the worst contraction since the global financial crisis in the first quarter, with a darkening outlook for global trade suggesting the country may fail to grow this year. The troubles for its export-reliant corporate borrowers may just be starting
  • The collapse in oil prices is set to worsen China’s factory deflation, building pressure on the central bank to loosen monetary policy
  • Hunger and joblessness see deepening distress in Indian villages as migrant workers leave the cities
  • Actor Samuel L. Jackson and rapper Cardi B traveled to Ghana last year to commemorate the 400 year anniversary of African slaves departing to the U.S. Their data bills helped to boost Ghana’s GDP

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