ECB Climate Warnings, Deflation Risk, EU Tariffs: Eco Day

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

• Christine Lagarde’s European Central Bank is re-evaluating how to pressure investors on addressing climate risk
• The ECB should unveil additional monetary stimulus in December to fend off deflation, a Bank of Spain official says
• The European Union on Monday agreed to put new tariffs on $4 billion worth of U.S. imports into place, barely 48 hours after President-elect Joe Biden pledged to “make America respected around the world again”
• Italy could be forced to spend as much as $11.8 billion a month to support businesses and workers hit by virus restrictions
• The economic divide between U.S. political parties grew in the 2020 election
• Canada’s emergency virus spending is leaking to other nations from purchases of imported goods while the services sectors still suffer
• The Reserve Bank of New Zealand boosted its stimulus with an offer of cheap loans to banks
• President Recep Tayyip Erdogan is sweet-talking markets on a return to orthodoxy, for now, after replacing the country’s top economic officials

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