Brexit Showdown, French Support, Vaccine Upends Outlook: Eco Day

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

• The global economic outlook could materially change for the better following promising results for a Covid-19 vaccine developed by Pfizer Inc. and BioNTech SE
• The U.K.’s House of Lords rejected government plans to break international law over Brexit, putting the onus back on Prime Minister Boris Johnson, who immediately vowed to push ahead with the legislation. U.K. carmakers -- who have spent nearly $1 billion preparing for Brexit -- warned of a much larger loss in trade if negotiators can’t reach an agreement with the European Union
• The EU will impose tariffs on $4 billion of U.S. goods in a tit-for-tat escalation of a transatlantic fight over illegal aid to aircraft manufacturers Boeing Co. and Airbus SE
• France is prepared to ramp up spending to support any firm -- from mom-and-pop shops to its national flag carrier -- as a resurgence of the pandemic casts a longer shadow over the economic recovery. The finance minister ruled out nationalizing Air France
• Donald Trump ran for re-election pledging to rapidly restore a pre-pandemic U.S. economy he called the best ever. He lost in part because that didn’t ring true in key industrial battlegrounds
• The Fed is warning that asset prices in key markets could still take a hit if the pandemic’s impact worsens. Meantime, here’s what a Biden victory means for the U.S. central bank; Lael Brainard may face scrutiny over dovish China comments if named Treasury Secretary
• Here’s how China’s singles’ day became the world’s biggest shopping spree
• U.K. retail sales rose in October as shoppers stocked up on food and other home supplies before a second lockdown took effect
• Britain moved to become the first major nation to require large companies and financial firms to disclose risks from climate change, a sign of what could become a powerful new regulatory requirement around the world
• The Swiss National Bank’s U.S. equity investments have risen to a record $127 billion, while Sweden’s Riksbank has signaled it will be leaning on Swedish real estate companies to fulfill its bond-buying promises

©2020 Bloomberg L.P.