Here’s a rundown of your top economic news today

  • U.S. looking at China sanctions over its Hong Kong crackdown
  • Sweden’s unconventional virus strategy makes neighbors wary

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

  • German Chancellor Angela Merkel’s government is preparing a bundle of measures to put Europe’s largest economy back on track after a nosedive triggered by the coronavirus pandemic. Meanwhile, European Central Bank Executive Board member Isabel Schnabel says the institution is ready to act
  • U.K. Chancellor of the Exchequer Rishi Sunak is set to close the government’s coronavirus wage support program to new entrants, a government official said, as the finance minister looks for ways to gradually withdraw an unprecedented support package
  • The euro-area economy is still facing severe threats even after policy makers took unprecedented measures to tackle the pandemic, according to the ECB. The bank looks set for another testy debate after one policy maker floated the prospect of removing bond-purchase limits
  • Sweden’s laxer response to Covid-19 gave its citizens more freedom than most. But as other European Union members start to emerge from the worst, Swedes risk being left behind
  • The U.S. is considering a range of sanctions on China for its crackdown on Hong Kong, as the Trump administration weighs whether to declare the city has lost its autonomy from Beijing
  • Jamie Dimon sees “pretty good odds” of a fast U.S. rebound thanks to the stimulus programs and the strength of the consumer before the pandemic. Meanwhile, St. Louis Fed chief James Bullard sees a rapid rebound pushing the jobless rate below 10% by December
  • China’s economy continued its slow recovery in May, with better sentiment among companies tempered by the grim global outlook
  • Romania has raised almost 62 billion lei ($14 billion) of debt this year — half of its funding needs for the whole of 2020 — as it rushes through bond sales before a possible June downgrade of its credit rating to junk by S&P Global Ratings
  • A key Bank of England policy maker played down the possibility of an imminent cut in interest rates below zero, saying that “reviewing and doing are different things”

— With assistance by Jeff Black


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