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Virus Goes Global, Italy Recession Watch, IMF Warning: Eco Day

Virus Goes Global, Italy Recession Watch, IMF Warning: Eco Day

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

  • The spread of coronavirus in countries outside of Asia sparked a selloff across global markets to start the week; traders are super-charging their global rate-cut bets in response
  • Italy appears never far from a recession, and the spread of the coronavirus may just tip it 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
  • International Monetary Fund Chief Economist Gita Gopinath said the coming days will be key to judging how well the world is containing the coronavirus, and that the economic impact could get much worse
  • It’s been a tumultuous month for Hungary, with the forint weakening to a record low and inflation rocketing at the fastest pace in seven years. The central bank has already begun to respond and may give more pointers on its plans when it meets Tuesday
  • The U.K. and the European Union are increasingly at odds ahead of next week’s trade talks, with each side accusing the other of backing away from past promises
  • Apple Inc. is reopening more than half of its retail stores in China, trying to rebound from a sales hit tied to the coronavirus
  • 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: Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Michael S. Arnold

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