Swiss Get U.S. Manipulator Tag, BOE Decides, Fed Tweaks: Eco Day

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

  • London enters the last days of 2020 with its position as the U.K.’s economic growth engine imperiled by Brexit and the struggle to contain the coronavirus
  • The Bank of England is likely to keep policy unchanged in its final decision of the year amid the uncertainties
  • The U.S. labeled Switzerland and Vietnam as currency manipulators in the Treasury’s foreign-exchange policy report; the Swiss nonetheless pledged to keep up currency intervention, while Vietnam disputes the underlying charges
  • The Federal Reserve promised to keep up bond-buying until“substantial” economic gains emerge, also extending its temporary dollar swap lines and repurchase facility
  • The Czech Republic will probably keep interest rates unchanged as it awaits the full impact of the coronavirus crisis before starting a debate on tightening monetary policy
  • The U.S. economy is showing signs of sputtering as retail sales tumble
  • China is going it alone among major central banks, signaling tighter monetary policy as the world’s second-largest economy recovers
  • China brings up last place on a Bloomberg scorecard meant as a guide for emerging-market opportunities in 2021, with Thailand ranking at the top
  • New Zealand’s economy rebounded from recession in the third quarter as massive fiscal and monetary stimulus sparked a recovery in consumer spending
  • Brazil risks a “lost decade” if it doesn’t cut spending and mandatory obligations, according to a study by the Organization for Economic Co-operation and Development

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