Europe’s Unused Trillions, BOE Ambition, Spain Stimulus: Eco Day

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

• Europe is leaving $2 trillion on the table as less than 15% has been used of the loan-guarantee funds from governments, according to data from seven of Europe’s largest economies compiled by Bloomberg
• Spain is weighing plans to significantly increase the size of its 100 billion-euro ($113 billion) loan guarantee fund after the program attracted huge demand from businesses struggling to weather the pandemic, according to people familiar with the matter
• The Bank of England’s fresh governor has a $1 trillion task, setting an ambition to ultimately prioritize shrinking the balance sheet before raising interest rates
• Hungary will try to keep a delicate balance in its monetary policy decision today, weighing economic growth and the currency
• Transatlantic relations could reach a new low next month as the European Union readies tariffs on billions of dollars of American exports aimed at politically important industries for President Donald Trump and his Republican allies in Congress
• Blackstone Group chief Steve Schwarzman is seeing a “big V” economic rebound over the next few months
• The U.S. Supreme Court has left intact Trump’s 25% tariffs on imported steel products
• Japan’s services sectors showed a solid rebound solid rebound in June while factory activity is seen to have slid again
• The U.S. economy is on the road to recovery, though a second wave of the virus looms

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