Overseas Headlines- May 6, 2020

United States:

Trump Pivots to ‘Phase Two,’ Risking More Death to Save Economy

“President Donald Trump fixed his course on reopening the nation for business, acknowledging that the move would cause more illness and death from the pandemic but insisting it’s a cost he’s willing to pay to get the economy back on track. Trump shifted his rhetoric on Tuesday, removing cautionary caveats about when and whether states should reopen and instead presenting the imminent easing of stay-at-home rules as a fait accompli.”



Euro Area’s Survival Threatened by Uneven Virus Shock, EU Warns

“Barely a decade after the euro-area sovereign debt crisis threatened to blow up the currency zone, the pandemic has put Europe’s south back in the eye of the storm. Italy, Spain and Greece all face economic contractions of more than 9% this year, according to the European Commission. Spending on rescue programs will bloat already stretched public finances, widening the gulf between northern and southern countries and pushing the bloc to the breaking point.”



China Considers Dropping Numerical GDP Growth Target for 2020

China’s leaders are considering the option of not setting a numerical target for economic growth this year given the uncertainty caused by the global coronavirus pandemic, according to people familiar with the matter. What may instead be unveiled at the upcoming National People’s Congress later this month is a description of the goal for gross domestic product growth, one of the people said. Last year the target was a range of between 6% and 6.5%.



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