Draghi’s Guessing Game, Polish Loans, Biden’s Spending: Eco Day

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

  • The Bank of Italy’s Daniele Franco is emerging as a possible candidate to take over as the country’s next finance minister, as the race intensifies over who will be premier-designate Mario Draghi’s pick to start reviving the staggering economy
  • Draghi’s yet-to-be fulfilled leadership of Italy’s next government is keeping people guessing about how much he will draw upon his prior career roles when in office
  • Poland’s central bank may help commercial lenders convert roughly $30 billion in Swiss franc loans into zloty, setting stiff conditions for assistance in resolving the dispute hanging over the industry
  • The impact of Britain’s departure from the European Union’s single market isn’t letting up after five weeks of the new trade deal
  • Chancellor of the Exchequer Rishi Sunak should put entrepreneurs at the heart of next month’s budget, one of the U.K.’s biggest business lobby groups said, as it called on him to avoid “damaging” tax rises
  • The U.K. government said its relations with the European Union have been “problematic” since Brexit, following disputes over issues including vaccines, trade and Northern Ireland
  • Just as Britain’s pubs, restaurants and food retailers prepare to emerge from lockdown in the coming months -- generating an expected surge in business -- Brexit threatens to deal the beleaguered sector a fresh setback
    • Lower-paid workers who have lost their jobs in the pandemic are finding it disproportionately hard to find new ones, underscoring the risks of long-term economic scarring as a result of the crisis
  • Joe Biden’s administration has dedicated its first weeks in office to spending more money on pandemic relief -- and shrugged off warnings the economy may overheat as a result. Biden has though backed a proposal for quicker phase-outs of $1,400 stimulus checks
  • China’s producer prices gained for the first time in a year in January as commodity prices climbed, while consumer prices fell back into deflation as virus restrictions curbed travel and spending

    • For the first time in her life, Zhang Sufang won’t be going home for the Lunar New Year. Instead the 37-year-old production supervisor is exchanging gifts with her parents and 16-year-old son by post as fears of reigniting the pandemic in China disrupt the nation’s biggest holiday
  • South Korea’s jobless rate surged to its highest in more than two decades, raising concern that an export-driven recovery could be masking a harsher scarring of the economy
  • India has vowed to spend almost half-a-trillion dollars to bring the pandemic-ravaged economy back onto a growth path, but that risks leaving vulnerable sections that still need support without immediate help

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