Covid Scars, U.K. Momentum, China’s Old Growth Drivers: Eco Day

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Welcome to Monday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the week.

  • Just as some patients recovering from Covid-19 suffer long-lasting symptoms, it’s becoming clear that the same will be true for the global economy once this year’s V-shaped rebound fades
  • The U.K. economy is building momentum, with real-time indicators suggesting consumers have started to splurge some of the cash they’ve saved now that the government has loosened lockdown rules
  • After fueling its V-shaped recovery by boosting spending on housing and infrastructure, China appears in no rush to drop its investment-led growth model despite calls for it to “rebalance” its economy
  • Separately, Chinese authorities sought to allay fears it wants to topple the dollar as the world’s main reserve currency as Beijing makes bigger strides in creating its own digital yuan. The comments were made at the country’s high-profile Boao Forum for Asia
  • Europe’s late but accelerating vaccination push is allowing monetary officials to begin pondering an economic future free of the curse of the coronavirus
  • Mario Draghi is using his position as Italian prime minister to deliver the one thing he could never conjure up when he was head of the European Central Bank: massive fiscal stimulus
  • The U.S. refrained from designating any trading partner as a currency manipulator in the Biden administration’s first foreign-exchange policy report, even as Switzerland, Taiwan and Vietnam met thresholds for the label
  • Justin Trudeau is set to unveil a vision for Canada’s post-pandemic recovery that will double as an election platform, heavy on new spending and assurances the mounting debt is affordable
  • Japanese exports posted a double-digit gain for the first time in more than three years in March, offering another indication that a recovery in global trade is gaining strength. Bloomberg Economics’ Yuki Masujima writes the data reinforces the view that exports will play a key role in sustaining the recovery as another virus wave hits the country

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