EU Budget Package, ECB Stimulus, No-Deal Brexit Warning: Eco Day

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

  • European Union leaders meeting in Brussels resolved a standoff with two eastern member states that had threatened to delay a historic $2.2 trillion budget and stimulus package -- and the deal is quite an achievement
  • The ECB escalated its campaign to shield the euro zone from a possible double-dip recession with another burst of stimulus, while cautioning that it may not deploy all its new firepower
  • U.K. Prime Minister Boris Johnson warned business and the public to prepare to leave the European Union’s single market without a trade deal as negotiations with the bloc falter. Meanwhile, the government fears its post-Brexit trade deal with Canada will not come into force in time to prevent tariffs being imposed Jan. 1
  • Asia’s head start in the economic recovery from Covid-19 is sending a warning to the rest of the world: inequalities exacerbated by the virus are unlikely to be reversed any time soon.
  • Czech political parties made a key step toward record tax cuts that the head of the central bank criticized as too expensive
  • London is headed for the toughest tier of coronavirus restrictions next week after new data revealed the capital has the highest rate of cases in England
  • Applications for U.S. unemployment benefits surged to the highest level since September, even as household net worth hit a fresh all-time high in the third quarter
  • The Bank of Canada believes the economic outlook remains fluid with both downside and upside risks in play, and stands ready to move in either direction to respond, a top official said
  • Australia, which has nearly eliminated Covid-19, is experiencing the biggest domestic holiday boom in half a century as restrictions blanket much of Europe and infections continue to climb in the U.S.
  • Mexico’s third-richest man became the highest profile voice to publicly support legislation forcing the central bank to buy dollar bills from financial institutions

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