BOE’s Balance Sheet, ECB’s Timebomb, Korea Trade: Eco Day

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

• Bank of England Governor Andrew Bailey signaled a major shift in the central bank’s strategy for removing emergency stimulus, stressing the need to reduce the institution’s balance sheet before hiking interest rates

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• The European Central Bank is rushing to defuse a German legal timebomb that threatens to break up cooperation over stimulus measures
• U.K. low-income households are racking up more debt in the downturn as the rich are able to save, research shows; here’s a look at what the Chancellor of the Exchequer could do to stimulate the U.K. economy
• Some of Europe’s top virus repellers are having the worst time shaking the economic hit from the pandemic; meanwhile, new virus hotspots are emerging in rural villages across India
• Early trade data show South Korea, a global bellwether, might have a less severe export drop in June
• Australia central bank chief Philip Lowe said the strength of the nation’s currency doesn’t pose a problem at this stage, and its level is based on solid health results, a shallower downturn and a reasonable outlook
• The IMF is assessing the global economy’s destruction as worse than previously feared, and governments are finding it’s easier to dish out the virus relief than to end it

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