China Demands Tariff Drop, French Economic Renaissance: Eco Day

(Bloomberg) --

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

• China is setting its price for signing an interim trade deal with the United States: drop the tariffs. The question is whether President Donald Trump will pay it
• Stabilization signs. The worst may be over for the world economy’s deepest slowdown in a decade
• French renaissance. After years of measuring unfavorably against Europe’s economic powerhouse Germany, France may finally have something to crow about. The euro area’s second-largest economy is outpacing its neighbor and the region as a whole
• Stable rates. The logic for extending the record pause in Polish interest rates is strengthening. Economists see the benchmark rate staying at 1.5% on Wednesday -- where it’s been since 2015
• Paring debt. Uncorked by last year’s currency shock, deleveraging has become one constant of Turkey’s economy adjusting to leaner days. It’s among the biggest challenges to the government’s vision of economic revival
• Rebound or recoil? For many emerging markets, 2020 is looking slightly better than 2019. That’s not guaranteed though. In a risk-off scenario, our scorecard suggests Argentina and Turkey are most vulnerable to disruption, write Scott Johnson and Tom Orlik
• Less favored. Indonesia isn’t benefiting the way it should from trade war tensions and with demographics that could be a ticking time bomb, the stakes are high for this to be turned around

To contact the reporter on this story: Jiyeun Lee in Hong Kong at jlee1029@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Karthikeyan Sundaram, Devidutta Tripathy

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