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

• 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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