German Recovery, U.K Poverty, Taper Pushback: Eco Day

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

• Germany’s economy is limping into 2021 heavily bruised by the pandemic, deeply reliant on government aid -- and in better shape than most of the euro zone
• The U.K.’s financial response to the coronavirus pandemic is in the spotlight as more families risk slipping into poverty
• Federal Reserve officials are beginning to split over when they may need to start pulling back on their massive monetary stimulus.
• Poland will probably refrain from cutting interest rates closer to zero after switching its focus to the national currency to support the economy during the latest wave of the Covid-19 pandemic
• Janet Yellen’s confirmation hearing as Treasury secretary is scheduled for Jan. 19 in front of the Senate Finance Committee, the day before President-elect Joe Biden is sworn into office
• World Bank Chief Economist Carmen Reinhart is worried that the protracted nature of the Covid-19 pandemic may overwhelm household and business balance sheets and develop into a financial crisis
• Don’t discuss reducing the amount of monetary-policy support for the U.S. while the pandemic is still raging, said two Fed officials after some of their colleagues mooted a debate later this year
• South Korea lost the most jobs in two decades and the unemployment rate hit a 10-year high as the country’s worst coronavirus outbreak yet forced businesses to slash hiring
• China is expected to report an annual trade surplus for 2020 that was the second-highest on record, despite a year marred by collapsing global demand because of the coronavirus pandemic and a trade deal that required it to boost imports of U.S. goods: chart

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