The Swedish way

Follow Us Get the newsletter As much of the world begins loosening Covid-19 lockdowns, Sweden provides a test case into what uneasy coexistence with the virus looks like. Guided by state epidemiologist Anders Tegnell, authorities in Stockholm eschewed the common wisdom of battling the virus by slamming shut the economy, with the widespread devastation that's entailed. While gatherings of more than 50 people are banned, Swedes can go to offices, stores and restaurants, and children under 16 attend school. They can even get haircuts. The message is: Trust your citizens to practice social distancing and to isolate themselves if they get sick. The results so far are mixed, as Peter Coy and Charles Daly explain. While the economy is expected to shrink less than most European Union members, it's still taking a big hit. Sweden's death toll per 100,000 people is far higher than its neighbors that locked down and even above the U.S., the current epicenter of the pandemic. The government acknowledges it failed to meet a key tenet of Tegnell's strategy: protect the vulnerable. Many of the deaths were in nursing homes. Yet the argument is that allowing public exposure will build so-called herd immunity while countries that suppressed the first wave of infection face a greater risk of a second; that Sweden can stick to its path until a vaccine and anti-viral drugs are found, while states can't maintain lockdowns for long. The next few months will show whether Sweden's gamble has paid off. — Karl Maier Swedish flags fly from a tourist souvenir shop in Gamla Stan in Stockholm on March 26. Photographer: Mikael Sjoberg/Bloomberg   Global Headlines Fauci feud | President Donald Trump accused his top infectious diseases official of wanting to "play all sides of the equation" by warning in congressional testimony that reopening the U.S. too quickly could lead to virus flare-ups. The public rebuke of Anthony Fauci follows claims by some Republicans that he has been too cautious in his advice on lifting social distancing rules. Turnout troubles | Democratic activists and women's groups say they saw a familiar and distressing playbook unfolding when Joe Biden addressed a sexual assault allegation by denying it and largely moving on. Now they're trying to convince the presumptive Democratic presidential nominee that if he doesn't tackle the issue head on, he risks depressing turnout among women voters, potentially giving Trump a boost. European divide | The coronavirus threatens to turn the long-existing fault line between the EU's richer north and poorer south into an economic chasm. While churches in Rome transform into food banks, some companies in Germany are spurning state aid and using their savings to keep workers on the payroll. The divide is reviving the age-old question of whether Italy can stay in the euro zone. There's little evidence that Britain is taking heed of the government's call to reopen the economy. Germany's economy will shrink less than 1% by end-2021, according to the European Commission. Italy's will have shrunk by 3.6%, pushing its debt to 154% of output — way beyond where Greece was at when it triggered the euro's last crisis. Hard times | Russians are running out of money after six weeks of lockdown and minimal government support, adding to pressure that pushed President Vladimir Putin to start reopening the economy even as total infections surged to the second-highest in the world. Almost half of Russians have either no savings or just enough to cover them for four weeks, according to a new survey. German Chancellor Angela Merkel accused Russia of an "outrageous" cyber attack on her email account and floated the possibility of further sanctions against Moscow. Crisis city | First came months of protest in 2019 and then the coronavirus outbreak, sending Hong Kong spiraling. Now, businesses and shoppers in the Asian financial hub are on edge as clashes between police and protesters resume and worries grow about another virus wave. What to Watch: House Democrats are still moving toward a vote tomorrow on a $3 trillion stimulus measure that has seeds for an eventual smaller compromise with Republicans who have rejected it in its current form. U.S. Supreme Court justices seem reluctant to give members of the Electoral College the right to vote as they please, saying the result in a close vote could be "chaos" when that body formally selects the president. Brazilian President Jair Bolsonaro is walking a tightrope between sticking to an austerity pledge to his economy minister and angering his supporters among public sector workers. The pandemic is projected to erase four years of growth from the global economy — almost $8.5 trillion in total output — and push 130 million people into extreme poverty by 2030, according to the United Nations. Tell us how we're doing or what we're missing at balancepower@bloomberg.net. And finally ... After Myanmar confirmed its first coronavirus case in late March, the residents of one village in the northwestern Sagaing region sprang into action. They built bamboo tents to serve as quarantine centers and banned non-essential movement. They had no choice, as Khine Lin Kyaw and Philip Heijmans report. The Southeast Asian nation, which was ruled for decades by a military junta, lacks adequate health-care infrastructure and there's been little government outreach to its hinterland. Firefighters spray disinfectant along a street in Yangon on April 23. Photographer: Sai Aung Main/AFP     A special offer for Balance of Power readers | For just $1.99 a month, get unlimited access to Bloomberg.com, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters.   You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022