U.K. Boosts Testing, Australia Rate Cut, U.S. Election: Eco Day

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

• Boris Johnson said there is “no alternative” to imposing a coronavirus lockdown across England as he revealed plans for whole cities to be tested to root-out asymptomatic carriers of the disease. The BOE looks certain to add stimulus this week to aid the economy which is facing a W-shaped recovery.
• Judging by its largest banks, you’d hardly know Europe was in the grip of a worsening pandemic. In the third quarter, ten of the biggest banks in the region set aside the least amount of money for doubtful loans since the onset of the coronavirus
• Australia’s central bank cut interest rates and announced a new bond-buying program as it seeks to ensure a rapid recovery across an economy now free of lockdowns. Bloomberg Economics expects the bank to fine-tune stimulus after the cut
• President Donald Trump and Democrat Joe Biden capped their bitter race with a blitz of campaigning in states critical to winning
• There’s a lot at stake for the Fed in the election even with monetary policy set to remain ultra-loose for years to come, and a U.S. economy that’s recovering, though far from full strength
• Commodity investors enduring a chaotic year are eager to get more clarity on where markets are heading as Election Day finally arrives in the U.S. Here’s what to watch in commodities
• Ray Dalio sees the need to have “a significant portion” of its portfolio in Chinese assets for long-term diversification and shorter-term tactical trading. Supporting his view, copper advanced as China’s manufacturing data promised continued demand
• India saw a robust start to the final quarter of 2020 with leading indicators pointing to a recovery in an economy that’s among the worst hit by the pandemic
• The sharper-than-expected slowdown in South Korean consumer price inflation was likely a one-off dip, as subsidies from the government’s fourth extra budget pulled down communications costs, Bloomberg Economics writes
• New Zealand Finance Minister Grant Robertson says he’s keeping a close eye on an exuberant housing market and plans to meet with the central bank early next week, after the government’s re-election

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With assistance from Bloomberg