ECB’s Challenge, Green German Bonds, China Luxury Binge: Eco Day

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

  • European Central Bank President Christine Lagarde has a new challenge to worry about on top of a fading economic recovery and a slump in inflation -- a surging currency
  • Investors, economists and lawmakers in Britain’s ruling Conservative Party are sending Rishi Sunak a simple message: Now is not the time for major tax rises
  • Germany is selling its first green sovereign bonds, a market the nation could dominate by the end of the year
  • An uneven recovery is under way in China: Consumers are back to binging on luxury handbags, cosmetics and cars, but the shopping enthusiasm is not extending to mass consumption
  • The end of October could prove a crisis point for Britons reliant on government wage support and deferrals for bills and mortgage payments
  • U.S. manufacturing expanded in August at the fastest pace since late 2018, powered by growth in new orders -- a bright spot in an otherwise struggling economy
  • China’s top leaders next month will lay out their economic strategy for the next five years. The plan is to ramp up domestic consumption to insulate the economy from geopolitical tensions
  • Yoshihide Suga, the leading candidate to replace Japanese Prime Minister Shinzo Abe, will likely keep big stimulus rolling
  • Australia’s economy contracted by the most on record last quarter, underscoring the need for unprecedented stimulus as the recovery from the nation’s first recession in almost 30 years is buffeted by a renewed Covid outbreak
  • Brazil’s economy posted its largest slump on record and its recovery is likely to be irregular as the crucial services sector remains weak despite emergency government spending

©2020 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.