U.S.’s Huge Week, European Lockdown, China Supply Chain: Eco Day

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

• The world’s biggest economy is entering a marathon week that spans a presidential election, a Fed meeting and the latest jobs snapshot
• Democratic nominee Joe Biden leads President Donald Trump in a series of polls released Sunday, remaining ahead nationally and in battleground states, although some state races remain very close
• Large swathes of Europe enter lockdown this week, with England joining nations from Austria to Portugal in concluding that tougher action is needed to counter the coronavirus that is once again spreading out of control
• The European Central Bank’s exceptionally clear pledge to come up with a new package of monetary stimulus at its next policy meeting has given markets plenty to think about.
• The Bank of England looks certain to unleash another burst of monetary stimulus this week as new coronavirus lockdowns shock the economy and put yet more pressure on government finances. U.K. firms will increase their net borrowings from banks this year five-fold and many are unlikely to start reducing this debt until 2022, according to consultancy EY
• Chinese President Xi Jinping called for setting up independent and controllable supply chains to ensure industrial and national security, just as the U.S. moves to cut China off from key exports
• Asia’s factories pushed ahead gradually in October as managers remained upbeat about recovery prospects and local virus outbreaks become less severe, manufacturing gauges show
• Australia’s central bank is expected to cut interest rates to a fresh record low, reduce its three-year yield target and unleash further bond buying as it tries to turbo-charge a recovery
• Indian banks saddled with the world’s worst bad debt pile pose a risk to the nation’s economic growth unless the government steps in to recapitalize some of them, three ex-central bank chiefs say

©2020 Bloomberg L.P.

With assistance from Bloomberg