U.K. Productivity, RBA Stays on Hold, China Rethink: Eco Day

(Bloomberg) --

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

• The productivity gap between regions of the U.K. is the widest in more than a century, underscoring the uphill battle facing Prime Minister Boris Johnson’s government. A “perfect storm” of three factors may be behind the country’s worst productivity slump in a quarter of a millennium
• The European Central Bank needs an “understandable, forward-looking and realistic” inflation goal -- but not necessarily a higher one, Bundesbank President Jens Weidmann said
• Asian central banks face increasing calls to cut interest rates as they jump into action against a virus crisis that’s hammering tourism, travel and confidence across the region Meanwhile, Australia kept rates unchanged as labor and property market strength gives the central bank room to wait and see
• The U.K. Treasury shortlisted two women and seven men to replace Mark Carney as Bank of England governor
• China is preparing steps to adjust to a slower rate of economic growth as the coronavirus outbreak shows few signs of abating
• Already reeling from months of protests and trade tensions, Hong Kong’s economy will fall further into recession as China’s coronavirus outbreak hits visitor numbers and deals a blow to sentiment, Qian Wan writes
• A month after Argentine President Alberto Fernandez took office, economists and investors still don’t know how he plans to dig his way out of a $311 billion debt hole and kick-start growth
• A U.S. manufacturing gauge rebounded sharply in January, topping estimates and signaling growth in the beleaguered sector for the first time since July

To contact the reporter on this story: Enda Curran in hong kong at ecurran8@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Michael S. Arnold

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