German Ruling, Furloughed Workers, Global Recovery: Economics

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

• As Europe tries to deal with a new crisis, Germany’s top court is about to rule on on whether it can continue to participate in the ECB’s Public Sector Purchase Program, dubbed QE. Unless the court rules against the asset purchases, this year could end with close to 1 trillion euros being printed to finance income support in countries that can’t afford it, writes Jamie Rush
• Bank of England policy makers will meet this week knowing that they’ll probably have to do more to combat the U.K.’s economic slump, if not now then soon
• More than 40 million workers have been furloughed during the shutdowns, based on data from Europe’s biggest economies. Without the government support many might have lost their jobs, sending unemployment soaring to levels never seen before
• Goldman Sachs Group Inc. and Morgan Stanley economists said there is evidence the world economy is starting to recover from the coronavirus and the restrictions placed on businesses and consumer
• Australia’s central bank kept the interest rate and yield objective unchanged Tuesday as it braces for the shock from the shuttering of large parts of the economy to stem the spread of the coronavirus. Separately, payrolls data suggest more than 1 million jobs were lost in the past five weeks, James McIntyre writes
• Treasury Secretary Steven Mnuchin plans to boost U.S. borrowing from April through June by an unprecedented $3 trillion to support an economy entering a recession caused by the coronavirus
• Germany’s massive domestic bailouts could help the rest of the European Union economy to survive the pandemic even as it outspends nations with less firepower
• Business conditions in the Arab world’s three largest economies deteriorated as shutdowns from the coronavirus and a plunge in oil prices took a toll on businesses.

©2020 Bloomberg L.P.