BOE’s Rate Suspense, ECB Stimulus, Coronavirus Risks: Eco Day

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

• Mark Carney’s final decision at the Bank of England is on a knife edge, and the governor hasn’t done anything to ease the tension
• European Central Bank stimulus has contributed to “very elevated” asset prices that raise the prospect of a sudden market drop, Executive Board member Yves Mersch said, in a speech that also warned of the risks to the institution’s credibility
• Finland, the only Nordic country that’s in the euro zone, had hoped to regain its AAA rating this month. But instead of being reinstated, Fitch Ratings Inc. cut the outlook on its AA+ rating to stable from positive on Friday
• It took 32 months, two prime ministers, and nearly 30 votes in Parliament to extricate Britain from the European Union—and the hardest part of the negotiations hasn’t even started
• Bourbon and scotch makers that have been flirting with globalization have found a common enemy in tariffs, writes Shawn Donnan
• Americans are projected to inherit $764 billion this year and will pay an average tax of just 2.1% on that income, New York University law professor Lily Batchelder estimates in a paper published Tuesday by the Brookings Institution
• The rising death toll from coronavirus, infections spreading across the world and Beijing’s extension of the Lunar New Year holiday prompted Tom Orlik to think through the economic risks for China, and the potential for global spillovers
• Prime Minister Shinzo Abe kept the number of reflationists on the Bank of Japan policy board unchanged on Tuesday, sending a strong signal of continuity for central bank policy

To contact the reporter on this story: Anirban Nag in Mumbai at anag8@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Karthikeyan Sundaram, Tuhin Kar

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