Lagarde’s Virus Concern, U.S. Nears Deal, WTO Race: Eco Day

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

• House Speaker Nancy Pelosi said Tuesday she’s hopeful for a stimulus agreement this week, which would be crucial to getting a bill passed by Election Day
• European Central Bank President Christine Lagarde said the unexpectedly early pickup in coronavirus infections is a “clear risk” to the economic outlook, in a sign that policy makers are gearing up for more monetary stimulus. Meantime, the EU has a plan to secure a Brexit deal: Let Boris Johnson claim he won
• The U.S. and Europe are heading for a clash over their preferred candidates to lead the World Trade Organization as the selection of the first woman to run the referee of global commerce enters a pivotal phase
• The Covid-19 crisis has plunged economies into recession and demanded a policy response without precedent. Was it worth putting government balance sheets and monetary credibility on the line? Early evidence suggests it was, writes Bloomberg Economics
• Boris Johnson will impose the U.K.’s tightest coronavirus restrictions on Greater Manchester on Thursday night, after talks with local leaders broke down
• As Oman wades back into the international debt market after more than a year, it’s seeking to boost investor confidence by raising the possibility of assistance from its Gulf neighbor
• Bloomberg Economics’ alternative data show Europe’s economy is slowing while the U.S. is now gaining after prolonged weakness
• Bank of Japan board member Makoto Sakurai warned that the central bank must be ready to act quickly if protracted fallout from Covid-19 harms the economy and financial system
• Cathay Pacific Airways Ltd. will cut about 5,300 jobs based in Hong Kong and and close its Cathay Dragon unit as part of a sweeping overhaul of the city’s flag carrier triggered by the halt in air travel due to the coronavirus pandemic

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