Europe’s Weak Link, Global Savings, ECB Stimulus: Eco Day

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

• Spain spent the years following the global financial crash trying to look a lot less like Italy, the weakest link in Europe’s economy. Then came the coronavirus
• The world is awash with savings and central banks don’t have the tools on their own to combat the resulting stagnation, ex-Fed Chair Janet Yellen and U.S. Treasury Secretary Lawrence Summers said
• Meantime Yellen didn’t push back on reports that she’s in the running to become the next Treasury secretary
• Flexible working could be the solution for businesses struggling to recruit women into senior roles, according to a new study by Zurich Insurance Group AG
• The European Central Bank will prove enough monetary stimulus at its next meeting to make sure governments, companies and households have access to cheap credit throughout the coronavirus crisis, according to chief economist Philip Lane
• President-elect Joe Biden said containing the coronavirus pandemic is key to the nation’s economic recovery, calling for cooperation between business and government to combat it
• Fed Vice Chairman Richard Clarida said prospects for the economic recovery were brightening due to progress in the development of Covid vaccines
• A third Republican senator said he opposes the nomination of Judy Shelton to the Federal Reserve Board, adding drama to a confirmation vote that had been targeted for this week
• Australia’s central bank decided to inject further monetary stimulus into the economy as it became clear that unemployment would stay high and inflation remain subdued for an extended period, according to minutes of its November policy meeting

©2020 Bloomberg L.P.