GDP Shocks in Europe, U.S., China Pivots, BOJ Message: Eco Day

(Bloomberg) -- Welcome to Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend:

• Spain’s economy suffered a bigger blow than expected in the second quarter, burdening it with the prospect of a long recovery that’s become even tougher because of additional headwinds facing the tourism industry
• The French economy experienced its sharpest contraction on record in the second quarter when strict coronavirus lockdowns choked off manufacturing, tourism and consumer spending across Europe
• Germany’s economy shrank the most in at least half a century in the second quarter, outlining the scale of the challenge facing Europe after the devastation of virus restrictions that slammed businesses and households
• The U.S. economy shrank the most on record in the second quarter and 17 million Americans claimed state unemployment benefits mid-July. While the GDP drop was anticipated, the jobless claims were not
• Chinese President Xi Jinping called for a greater push on reforms to stimulate domestic demand, as the economy continues its steady recovery from the coronavirus slump
  • Separately, the first official gauge of China’s economy in the second half of the year showed continued upward momentum in the recovery
• For the first time since Haruhiko Kuroda took the helm in 2013, the Bank of Japan isn’t projecting more optimism than private economists in a shift in its messaging facilitated by Covid-19
• North Korea’s economy managed to eke out growth last year, rebounding from the worst contraction in decades, but the situation has likely deteriorated as the pandemic forced the country to shut its borders

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