China First Out, Europe’s Recovery Fades, Scarred U.K.: Eco Day

(Bloomberg) -- Welcome to Monday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the week:

• The relief as economic activity surged in Europe when coronavirus lockdowns ended is giving way to renewed gloom that suggests a full recovery is a long way off.
• China’s economy, the first to succumb to the coronavirus, is proving to be the fastest to recover, with the PBOC adding extra liquidity Monday to help the market buy government bonds
• The U.K. economy will likely be smaller at the end of 2021 than it was before plunging into a record recession this year, according to a Bloomberg survey that casts fresh doubt over Bank of England projections.
• The London housing market saw a surge in activity last month as Londoners sought to flee the city after lockdown and a tax break encouraged buyers.
• How the virus and economic downturn are shaping the U.S. election race, according to Bloomberg Economics
• Japan posted a record economic contraction in the second quarter, with recovery prospects now hinging on how quickly an uptick in virus infections can be contained.
• The emerging-market rally that has all but wiped out the losses since the start of the coronavirus pandemic looks headed for a late-August reappraisal amid a resurgenceof trade tensions
• The almost daily drumbeat of tensions between the U.S. and China shows little sign of letting up, while touching on everything from the coronavirus to trade to defense issues to monetary policy
• India’s latest set of incentives to entice businesses moving away from China seem to be working, with companies from Samsung Electronics Co. to Apple Inc.’s assembly partners showing interest
• U.K. Chancellor of the Exchequer Rishi Sunak is putting 2 million viable jobs in peril by ending his jobs support program too early, risking an unnecessary unemployment crisis, according to a think tank
• German Finance Minister Olaf Scholz proposed extending job-preserving subsidies during the coronavirus crisis to 24 months
• Israel’s economy contracted the most since at least 1975 as a result of the Covid-19 pandemic and a near-total lockdown imposed by the government to bring the outbreak under control
• Turkey’s central bank is in a bind and investors are about to find out how policy makers solve the dilemma of appeasing a president preoccupied with low interest rates and the need to raise borrowing costs to control the lira rout

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