French Recession, EU Split on Plan, U.K. Struggles: Eco Day

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

• The French economy shrank the most since World War II in the first quarter, and the outlook for the rest of the year is souring significantly amid the confinement to limit the spread of the coronavirus, according to the Bank of France
• European Union finance ministers failed to agree on a strategy to mitigate the economic impact of the pandemic, prolonging a paralysis that casts doubt over the bloc’s chances to weather the storm unscathed
• U.K. businesses are struggling to access the cash they need as government efforts fall short, according to the British Chambers of Commerce
• The White House is developing plans to get the U.S. economy back in action
• The European Central Bank’s decision to accept junk-rated Greek government bonds as collateral paves the way for the country to finance its fight against the coronavirus while bolstering banks’ liquidity
• Even with a record stimulus package, Japan’s economy is heading toward a record contraction of 25% this quarter following Prime Minister Shinzo Abe’s declaration of a state of emergency in Tokyo, Osaka and some other parts of the country, according to Goldman Sachs
• After cutting interest rates for the first time in five years to ease the economic mayhem triggered by the coronavirus, Poland is set to pause before lowering them further
• Australia’s AAA credit rating outlook has been cut to negative, reflecting the massive fiscal stimulus the government is delivering to support an economy spiraling toward recession, and the associated jump in the nation’s debt burden, S&P Global Ratings said
• Former Fed chief Ben Bernanke says he doesn’t see a quick, sharp rebound in the American economy
• Chinese economists and officials are engaging in a previously unimaginable debate: should Beijing drastically reduce its growth target or even abandon it altogether?

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