Powell’s Warning, ECB Communications, U.K. Properties: Eco Day

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

  • Federal Reserve Chair Jerome Powell cautioned lawmakers that the U.S. economy remains in a damaged and uncertain state despite progress made in the development of Covid-19 vaccines; Meantime, U.S. manufacturing expanded at a slower pace in November, easing back from the strongest reading in two years
  • News that the European Central Bank’s chief economist has been speaking to banks and investors immediately after policy decisions risks renewing unease about the institution’s communications strategy
  • With Poland’s central bank meeting Wednesday, quantitative easing -- rather than negative interest rates -- is the preferred tool to the Poland’s economy as the coronavirus crisis worsens
  • ECB policy maker Martins Kazaks said an expansion of the institution’s emergency bond-buying program by 500 billion euros ($603 billion) would be “reasonable” and he’s ready to support an extension until mid-2022
  • Few places expose the uneven economic impact of the U.K.’s Covid crisis more clearly than the property market, where housing prices have surged to records while millions struggle
  • British and European Union negotiators are racing to strike a post-Brexit trade deal before the end of the week, with officials on both sides saying the outcome is still too close to call
  • Most of England’s retailers are emerging from lockdown, with just over three weeks left until Christmas and the outlook for the industry looking far worse than before they closed their doors a month ago
  • U.S. President-elect Joe Biden told the New York Times he’d leave the phase-one trade deal with China in place while he conducts a full review of U.S. policy toward China in consultation with key allies

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