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Big Economic Reads: Virus Risks Infecting World for Longer

Simon Kennedy

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The coronavirus is perhaps posing a bigger risk to the global economic outlook than first thought as its spread in China alone leaves factories shuttered and shoppers housebound.

The virus is, for a third week, the main topic in this week’s collection of analysis, scoops and enterprise from Bloomberg Economics:

China Rapid Rebound Thesis Tested as Virus Fallout Deepens China’s Silent Factories Fuel Workers’ Fears as Virus SpreadsEconomists Cut China’s Growth Forecast on Coronavirus Impact What to Watch for in China Stimulus as Virus Impact Hits EconomyVirus Shuts Down Economy the Size of Sweden for Third Week Experts Get Creative to Measure Coronavirus Blow to Economy

Bloomberg’s Asia team reported how some economists were turning more pessimistic about the outlook and reported from across China how factories were still silent.

Big Oil Warned White House China Trade Deal Was UnrealisticU.S. Weighs Higher Tariff Ceilings in Bid for More Sway Over WTOTop Trump Adviser Says U.K. Slips Behind EU in Trade Priorities

The virus didn’t stop the U.S. from continuing to rethink the shape of the post-war global trade model with Jenny Leonard and Bryce Baschuk reporting how President Donald Trump was considering ratcheting up pressure on other nations. Oil industry leaders are already warning the White House that they may be unable to produce the products that China has committed to buy.

Powell Suggests the Fed May Lack Ammo to Combat Next RecessionFed Picks Shelton, Waller: Two Mavericks with Little in CommonLagarde’s ECB Eyes Sustainable Bonds to Battle Climate RisksCarney Counts His Luck for Never Taking BOE Into Negative RatesGlobal Inflation Prophets Wonder If This Year Is DifferentEurope’s Post-Subzero Rate Experiment Faces Next Big Test

Key central bankers continue to eye the virus as the emerging risk to their plans to keep monetary policy on hold. One concern for Federal Reserve Chair Jerome Powell is he may lack the ammunition to fight the next downturn, while the desire to fight climate change is prompting a debate within the European Central Bank. Bank of England Governor Mark Carney has some thoughts on leadership as he prepares to leave office. Meantime, some are suggesting inflation may finally be picking up.

The Best of the Rest:

Putin’s Power Play May Hinge on Premier’s Economic Revival IMF Heads to Argentina for Debt Talks With Poker-Faced FernandezA Bold Plan to Defuse ‘Time Bomb’ of Inequality in U.S. SchoolsThomas Piketty’s New Book Is About a Lot More Than Capitalism (Podcast)

To contact the reporter on this story: Simon Kennedy in London at skennedy4@bloomberg.net

To contact the editors responsible for this story: Stephanie Flanders at flanders@bloomberg.net, Zoe Schneeweiss

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