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French Stimulus, BOE Touts Firepower, Looming Tax Trap: Eco Day

French Stimulus, BOE Touts Firepower, Looming Tax Trap: Eco Day

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

  • Emmanuel Macron’s government unveiled the long-awaited 100 billion-euro ($118 billion) stimulus plan the French president is betting on to transform the economy and his political fortunes with less than two years to go until elections
  • The Bank of England is touting the firepower it can use to deliver more stimulus as the U.K. enters what could be a chaotic final few months of 2020. Meanwhile, BOE policy maker Gertjan Vlieghe warned against using gold prices as a predictor of inflation
  • German Chancellor Angela Merkel’s parliamentary caucus has backed plans allowing for extraordinary deficit spending next year as the coronavirus continues to batter Europe’s biggest economy
  • The arrival of a new central bank boss is throwing into question Ukraine’s forecast that interest rates will remain stable for the rest of the year
  • U.K. Prime Minister Boris Johnson sought to win back the trust of his own colleagues after weeks of criticism and policy reversals left his coronavirus strategy in disarray
  • A tax trap is looming for Europe’s cross-border commuters and the companies that depend on them, if working from home becomes permanent following the pandemic
  • The U.S. economy showed signs of progress but continued to struggle amid the pandemic, according to a new Fed report
  • Warning signs are flashing for China’s $45 trillion banking industry, just when Beijing needs it to keep the economy on its recovery path. Bad debt has hit a record and capital buffers are eroding
  • Australians have salted away cash they’ve been unable to spend on leisure due to the Covid lockdown and paid down debt, leaving them well placed to drive a recovery once the virus is contained
  • President Donald Trump plans to nominate a top aide to lead the Organization for Economic Cooperation and Development, seeking to make him the first American secretary general of the global policy and advisory group
  • Italy, Europe’s weakest link, is set to become more of a problem, David Powell writes
  • The September Beige Book, released two days before the August payrolls report, provided critical information about the state of the U.S. labor market, Eliza Winger writes
  • Central bank President Roberto Campos Neto said Brazil must resume fiscal austerity following this year’s record pandemic spending, or risk being punished by financial markets. So much Covid cash was handed out, that poverty is nearing a record low

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