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U.K. Baby Steps, Italy’s Bad Memories, Dalio Dishes: Eco Day

U.K. Baby Steps, Italy’s Bad Memories, Dalio Dishes: Eco Day

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

  • The U.K. will begin taking “baby steps” toward reopening its economy -- even as signs suggest the government is digging in for the long haul. Meanwhile, retail sales dropped in April by the most in at least a quarter-century
  • In Italy, memories of past market mayhem -- such as a 1992 run on the lira -- have re-emerged along with the old fault lines following the economic shock of the coronavirus lockdowns
  • Two ECB officials spoke out in defense of their bond-buying strategy a week after Germany’s top judges questioned its legality
  • Europe’s biggest banks differ on how severely the coronavirus will hit the economy, making for widely varying expectations of how much of their loan books will go bad
  • For years, Czech billionaire Andrej Babis -- now the prime minister -- wanted to run his country like a business. The coronavirus pandemic finally gave him the chance
  • Norway plans to draw a record $37 billion from its wealth fund, forcing the world’s biggest sovereign investor to embark on an historic asset sale to generate cash
  • Russia’s borrowing costs dropped to a record low as investors bet that a deep economic slump this year will force the central bank to keep cutting interest rates
  • Ray Dalio, James Gorman and Meg Whitman are among those opining on how the coronavirus pandemic will change the world
  • Fed officials warned the U.S. economy will experience a decline of historic proportions in the current quarter, and might see massive bankruptcies that could leave a lasting scar. Jerome Powell and his Fed colleagues are staring down the possibility of mass bankruptcies and long-lasting unemployment
  • U.S. government spending to blunt the pandemic blow led to a record $737.9 billion deficit in April

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