U.K. Trade Challenge, China Question, New Tech Curbs: 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:

• Brexit shattered 50 years of trade policy in Britain, divorcing the country from its single largest market. Prime Minister Boris Johnson is now trying to glue the pieces back together
• The biggest question for the global economy right now is how quickly China can get back to anything like normal operations while it’s battling the coronavirus outbreak that has killed almost 1,900 people and sickened tens of thousands
• The Trump administration is considering new restrictions on exports of cutting-edge technology to China in a push aimed at limiting Chinese progress in developing its own passenger jets and clamping down further on tech giant Huawei’s access to vital semiconductors, according to four people familiar with the discussions
• Just days into his new role as U.K. Chancellor of the Exchequer, Rishi Sunak is considering tearing up the spending framework that underpinned Prime Minister Johnson’s victory in last December’s election
• Having suffered the worst economic performance in a decade last year, Mexican Finance Minister Arturo Herrera sees reasons to be more optimistic about Latin America’s second-largest economy in 2020
• Bulgaria signaled it may delay its bid to adopt the euro amid fears the preparatory steps could jeopardize a long-standing fixed exchange rate to the common currency
• Russian President Vladimir Putin’s overhauled cabinet is set to open the way for a government spending spree after five years of austerity. Here’s how he’ll do it
• Japan is falling into recession as the coronavirus pummels an economy already weakened by a sales tax hike, according to a Bloomberg survey
• President Moon Jae-in said the spreading coronavirus is an emergency for South Korea’s economy and called for “extraordinary” steps to minimize its impact

To contact the reporter on this story: Jiyeun Lee in Hong Kong at jlee1029@bloomberg.net

To contact the editors responsible for this story: Paul Jackson at pjackson53@bloomberg.net, Karthikeyan Sundaram, Pradeep Kurup

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