ECB Inflation Quest, Rise of Robots, U.S. Fiscal Talks: Eco Day

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

• The European Central Bank’s quest for higher inflation is taking shape as it enters the next phase of its Federal Reserve-style strategic overhaul
• There’s a downside to automation. Worldwide, Bloomberg Economics estimates that 800 million people work in sectors where advances in technology place a significant share of jobs at risk
• Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin “continued to narrow their differences” on a coronavirus relief package, a Pelosi aide said Monday, as time draws short to reach agreement on a bill that could pass by Election Day
• Australia’s central bank said further policy easing is likely to “gain more traction” as restrictions are lifted across the economy and agreed the governor would flag the shift to targeting actual forecast inflation
• China’s hotels and restaurants, one of the hardest-hit sectors of the economy during the coronavirus pandemic, remained a significant drag on growth in the third quarter even as the recovery gained momentum
• The Federal Reserve and other central banks will eventually discover that breaking up isn’t easy after partnering with their governments and the financial markets to avert a pandemic-driven depression
• After Hungary pivoted last month to focus more on the 1-week deposit rate -- and not the required reserve rate, which is decided each month -- the central bank is expected to leave the latter unchanged at 0.6% on Thursday.
• What sort of science fiction does Xi Jinping like? How can China’s weathermen use the president’s political philosophy to improve their forecasts? These are the sorts of questions Communist Party cadres are now pondering as they prepare for the next big milestone in the president’s effort to cement control: Elevating Xi Thought alongside Maoism

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