U.K. Unemployment, BOE’s QE Plan, Global Growth Woes: Eco Day

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

  • U.K. employment fell by the most since the global financial crisis at the height of the nation’s lockdown, as the number of Britons with jobs tumbled by 220,000

    • Prime Minister Boris Johnson’s pledge of putting U.K. children back in school a “national priority” has a clear rationale -- it’s the only way to get their parents back to work
    • U.K. consumer spending warmed up along with the weather in July as people bought more takeaway food and visited local shops
  • The Bank of England will accelerate and step up quantitative easing if the economy slows and markets wobble again, its deputy governor for markets and banking and monetary policy committee member Dave Ramsden tells The Times in an interview
  • It looks increasingly like Emmanuel Macron holds the key to whether the U.K. and European Union will get a trade deal
  • The overall global picture remains troubling, writes Tom Orlik. China and Europe managed to control the virus early and get back to work -- but now face a slowing recovery and fears of a renewed rise in cases. The U.S. and some major emerging markets continue to wrestle with an uncontained outbreak
  • Even as China continues to return fire at the Trump administration, leaders in Beijing are also signaling they want to ease tensions with the U.S. as the clock ticks down to the presidential election. But tensions are far from resolved: the U.S. will order imports from Hong Kong to be labeled as ‘Made in China,’ according to a draft government document
  • President Donald Trump’s executive action may have kept higher U.S. unemployment benefits in place for now, but potential payment delays and a cap on the funds could still leave low-income Americans in the lurch
    • Trump said he’s “very seriously” considering a capital gains tax cut, a move he decided against last September after saying it wouldn’t do enough to help the middle class
  • Mark Carney, the only person to run two major nations’ central banks, is helping Justin Trudeau craft next steps in a plan to pull Canada out of a deep recession sparked by the coronavirus
  • Singapore’s economy suffered a bigger contraction in the second quarter than previously estimated, signaling a long recovery ahead for the trade-reliant nation
  • India’s economic activity monitors are beginning to flatline just months after showing signs of returning to life

©2020 Bloomberg L.P.

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