Lagarde’s Green Push, Polish Rate Hold, U.K. Jobless: Eco Day

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

• Britain has lost almost 700,000 jobs in the coronavirus crisis, a blow to the economy that will heap further pressure on the government to extend its wage-support programs
• The pandemic could easily have derailed Christine Lagarde’s plan to enlist the European Central Bank in the fight against climate change -- but she won’t let it
• Poland’s record-low interest rates are becoming increasingly entrenched amid a renewed surge in Covid-19 infections, with the central bank expected to leave benchmark borrowing costs at 0.1% on Tuesday
• U.K. Prime Minister Boris Johnson’s plan to renege on part of the Brexit divorce deal passed its first hurdle in Parliament, but not until after a bruising debate that saw senior members of his party denounce the move
• The European Union stepped up demands on China to open its market further to foreign investors, seeking to keep alive a goal for a far-reaching investment agreement this year
• The Federal Reserve’s new approach to setting interest rates will probably be hard to divine from the economic projections it’s set to publish Wednesday
• Retail sales in the U.S. will actually grow this holiday season, according to new projections from Deloitte, despite ongoing economic uncertainty and higher unemployment
• China’s economic recovery sped up in August, led by an acceleration in industrial output and the first growth in retail sales data since Covid-19 hit
• Morgan Stanley economists said failure by Republicans and Democrats to agree on a fresh round of U.S. fiscal stimulus would delay the recovery by six months
• The pandemic may permanently replace some human jobs with machines, according to a study from the Philadelphia Fed
• Developing Asia’s coronavirus-battered economy will shrink for the first time since the early 1960s, according to the Asian Development Bank
• Toyota won’t expand further in India due to the country’s high tax regime -- a blow for Prime Minister Narendra Modi, who’s trying to lure global companies to offset the pandemic slowdown

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