No-Deal Brexit Risk, German Stimulus, India Downgrade: Eco Day

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

• Chances are growing that the U.K. will end the post-Brexit transition period at year’s end without a free-trade deal, adding risk of further turmoil in the Covid-ravaged economy
• Poland’s central bankers were in serious error to slash interest rates close to zero, former Governor Marek Belka says
• Germany’s Angela Merkel is lining up as much as 100 billion euros in a second package of stimulus to spur economic recovery
• Australia’s central bank held fire with its interest rate and yield objectives unchanged on Tuesday, in a sign the economy might be finding its footing
• Negative inflation in South Korea is fanning fears of potential global deflation
• A credit rating downgrade by Moody’s placed India one step away from junk status
• In economies re-opening this week, Indonesia is pushing to restart businesses to avoid mounting job losses, and Singapore is seeking to balance health and economic risks as an election fast approaches
• The virus recession has prompted a record wave of rate cuts by emerging market central banks, and a number are also venturing into quantitative easing. Bloomberg Economics’ Ziad Daoud writes what’s at stake as emerging markets buy assets

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