Fed Low Rate Spreads, Tory Tax Fight, Hunger Crisis: Eco Day

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

• The Fed’s move to an extended era of low interest rates offers an opportunity for emerging economy central banks to do the same
• Rishi Sunak on Monday will stop picking up part of the tab for millions of Britons’ dinners. Meanwhile, lawmakers in Boris Johnson’s Conservative Party criticized the idea of increasing taxes to plug the swelling budget deficit
• America’s labor market probably extended its rebound in August to push the unemployment rate below 10%
• The world is hurtling toward an unprecedented hunger crisis
• Denmark needs to borrow more than previously expected as postponed tax collection and other stimulus take a heavy toll on public finances
• Turkey probably contained the damage from the coronavirus pandemic last quarter with a stimulus campaign that destabilized the lira
• U.K. workers are proving reluctant to go back to their offices
• Chinese economic activity continued to rebound in August, with a gauge of the services industry at the strongest level since early 2018 while the expansion in manufacturing activity slowed slightly
• A twin-speed economy is developing in Australia and posing a challenge for the central bank
• The race to replace Japan’s Prime Minister Shinzo Abe is starting to take shape, with a former defense minister emerging as a strong candidate
• China’s foreign minister wants a deal with the E.U. on investments by the end of the year, Les Echos reports
• Once the world’s fastest-growing major economy, India is set to post the steepest quarterly GDP decline in Asia

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