Italy ECB Push, China Moral Hazard, Hungary's Patience: Eco Day

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Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Italy will seek a seat on the European Central Bank’s Executive Board and use it to push the institution to buy bonds to fund infrastructure projects, according to a senior lawmaker in the coalition government
• The most hawkish member of Poland’s Monetary Policy Council said a single interest-rate increase is needed to ward off the rising threat of inflation
• Swiss economic growth accelerated more than economists expected in the first quarter, joining the upturn seen across much of Europe at the start of the year
• Bloomberg economists Dan Hanson and Tom Orlik have mapped out the main scenarios of the U.S.-China trade war. Their conclusion: global GDP could take a $600 billion hit in 2021, the year of peak impact
• In China, the takeover of Baoshang Bank by regulators should put investors on notice -- an implicit backstop for the banking sector is no longer a sure thing
• Canadian Prime Minister Justin Trudeau’s government gave lawmakers formal notice it intends to bring forward legislation to ratify the new North American free trade agreement
• Chile’s central bank started to consider cutting its benchmark interest rate as policy makers puzzled over the impact of a large influx of immigrants on the economy
• Investors expecting Hungary’s central bank’s response to accelerating inflation and a weakening forint may need to wait another month

To contact the reporter on this story: Enda Curran in Hong Kong at ecurran8@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Henry Hoenig

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