Global Economy Shaky, Trade War Heat, France Budget: Eco Day

(Bloomberg) -- Welcome to Monday, Europe. Here’s the latest news from Bloomberg Economics:

  • The global economy is looking shaky and the Bank for International Settlements says central banks may be powerless if it all goes awry. The BIS is also sounding the alarm about surging high-risk lending
  • Open and frank. The European Central Bank executive board members Benoit Coeure and Peter Praet want to communicate more on the pace of increases to avoid stirring up markets. Meanwhile, its Governing Council member Ewald Nowotny wants the central bank to consider tightening its monetary policy sooner than originally planned
  • Stepping out: Bank of England policy makers have the chance this week to share their thoughts on interest rates now that Governor Mark Carney has said he’s sticking around for longer
  • Budget blues: Emmanuel Macron’s second budget as French president will hammer home an economic strategy that’s becoming increasingly unpopular: make work pay, whatever the cost
  • Tough stance: As Denmark comes to grips with its role in one of Europe’s worst dirty money sagas, its parliament is trying to stop the nation’s credit rating from being dragged down by the scandal
  • Escalating war: The Trump administration’s tariffs on another $200 billion in Chinese goods kicked in on Monday, ramping up a trade war between the world’s two biggest economies. Meanwhile, producers in China are already under stress even ahead of implementation of U.S. tariffs, as indicated by an explosion in corporate borrowing, according to the China Beige Book
  • Hits and misses. India’s shock move to ban high-denomination currency notes almost two years ago caused much hardship, with limited benefits
  • Crypto regulation: For an asset class premised on the idea that governments can’t be trusted, any suggestion of regulation will move the price of cryptocurrencies. But not always downwards

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