U.K. Jobless Claims, Next ECB Move, BOE Support: Eco Day

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

  • U.K. jobless claims jumped by more than half a million in May as the lockdown designed to stop the spread of coronavirus drove a wrecking ball through the labor market
  • The European Central Bank’s next move to cope with the deepest downturn in decades could turn on whether it listens more to consumers or investors about the risk of deflation
  • U.K. investors are looking east to work out what more the Bank of England may do to help support the country’s coronavirus-addled economy
  • There’s one country whose economy looks set to fare better than others when it comes to the fallout of Covid-19: Sweden
  • Once the growth engine of Turkey’s $750 billion economy, consumers are setting their sights lower in the post-lockdown era
  • After three cuts to offset the damage wrought by Covid-19, Polish interest rates are unlikely to budge for some time from their record low
  • The Trump administration is preparing a nearly $1 trillion infrastructure proposal as part of its push to spur the world’s largest economy back to life, according to people familiar with the plan
  • Jerome Powell’s dramatic bid to insert the Federal Reserve into protecting private companies from the fallout of the coronavirus is finally underway, but the central bank is nervous about managing the long-term risk. The Fed will begin buying individual corporate bonds under an emergency lending program that to date has purchased only exchange-traded funds
  • The Bank of Japan increased its lending support aimed at struggling companies while leaving its main monetary policy settings untouched
  • Bloomberg Economics’ Tom Orlik sees a less bleak global picture, as indicators for a number of major economies come off the floor. In China and Germany, some gauges show activity back to pre-virus levels

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