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Pandemic Concern, China Risks, Italy Recession Watch: Eco Day

Pandemic Concern, China Risks, Italy Recession Watch: Eco Day

(Bloomberg) --

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • The worrying prospect that the coronavirus outbreak could become the first truly disruptive pandemic of the globalization era is renewing doubts over the stability of the world economy
  • The disease and China’s efforts to stop its spread mean the economy will grow slower this quarter than first thought, with the median forecast now for growth to be the weakest in 30 years
    • In better new, Apple Inc. is reopening more than half of its retail stores in China, trying to rebound from a sales hit tied to the coronavirus
  • In other global effects, the spread of the coronavirus may just tip Italy back into the danger zone
    • Japan, too, is flirting with recession as the sales tax weighs on the economy and the virus outbreak exacerbates woes; a rapid virus spread in South Korea pummeled consumer confidence in February
  • Three key Republicans on the Senate Banking Committee said Monday that they remain undecided on President Donald Trump’s nomination of Judy Shelton to the Federal Reserve Board
  • In Germany, companies cut spending for a third quarter at the end of last year, leaving the economy struggling and vulnerable even before the outbreak created a fresh threat for global growth
  • Despite a three-year surge, obscure debt instruments linked to Ukraine’s gross domestic product could gain another 32%, according to Bank of America Corp.
  • Most of the Brexit uncertainty that has been overshadowing the U.K. economy has lifted, though it’s too early to say business investment is fully returning, according to Bank of England Chief Economist Andy Haldane

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Brian Swint

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