ECB’s Crisis Response, German Factories, Currency Wars: Eco Day

(Bloomberg) -- Welcome to Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend.

• The European Central Bank is likely to step up its crisis response later this year, according to economists, with a faltering recovery and a stronger euro threatening to exacerbate price declines
  • The ECB’s emergency stimulus program is endangering the region’s climate-change objectives by “feeding a natural gas frenzy,” environmental campaigners say
• German manufacturing continued its recovery in July, albeit at a dramatically slower pace, with orders rising for a third month after restrictions to contain the coronavirus pandemic were relaxed
• The U.K. is one of the first countries in Europe to start withdrawing emergency measures that helped the economy through the pandemic, a move that could imperil millions of jobs
• Growing unease among central banks about the slumping dollar has ignited speculation that a fresh currency war could be on the horizon
• It’s U.S. jobs report day, here’s what to expect
  • U.S. unemployment-claims figures gave a mixed picture of the labor market, as the adjusted and unadjusted figures moved in different directions
  • Two Fed officials downplayed the chances of updated public guidance on the path of interest rates at their upcoming policy meeting
• The poisoning of Russian opposition leader Alexey Navalny with a military-grade nerve agent has triggered the strongest threat of new sanctions against Russia in months, battering its bonds and currency -- and lowering the odds of an interest-rate cut
• Women are starting to be paid almost as much as men -- at least when they’re newly hired, a report shows
• Sweden’s central bank’s corporate bond purchase program has been criticized for a lack of ambition and poor timing. Now concerns are being raised about how the bonds will be purchased
• France could extend the furlough program it created to protect jobs during the pandemic, the country’s finance minister said

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