EU Stimulus Deal, U.K. Rebound, Hungary Rate Decision: Eco Day

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

  • European Union leaders agreed on a landmark stimulus package that will see the bloc issue 750 billion euros ($860 billion) of joint debt to help member states mitigate the coronavirus downturn
  • Governments that raced to the rescue as the coronavirus hit their economies now face the dilemma of whether to extend their massive bailouts of businesses and labor markets
  • Hungary will probably reduce borrowing costs again Tuesday, continuing to reverse course following a change in the team overseeing monetary policy
  • Poland is set to keep interest rates near zero even as risks of such policies increase over time, according to a central bank policy maker
  • The U.K.’s recovery is still looking V-shaped, with the economy clawing back about half the output it lost in March and April, Bank of England chief economist Andy Haldane said. Meanwhile, U.K. households are experiencing the biggest income shock since the 1970s oil crisis
  • U.S. economic activity is faltering in regions where new cases have increased, including the Sunbelt and West, but showing improvement in the Northeast, Eliza Winger writes. More jobless and depressed economic activity point to the U.S. recovery stalling
  • Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi will kick off negotiations on the next virus relief plan
  • Judy Shelton, President Donald Trump’s controversial Federal Reserve pick, was poised to clear a key hurdle to confirmation
  • Zero interest rates can be a more effective tool for central banks to get individuals borrowing and making riskier investments than when the cost of money turns negative, according to a new study from a trio of researchers with Israel’s Ben-Gurion University
  • Champagne receptions at lakeside villas. Rosé luncheons at the Intercontinental Hotel. Even during a pandemic, the feting of Geneva’s trade diplomats continues apace

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