Trump Threats, No-Deal Brexit Risk, French Recovery: Eco Day

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

• President Donald Trump said he intends to curb the U.S. economic relationship with China, by threatening to punish any American companies that create jobs overseas and to forbid those that do business in China from winning federal contracts
  • The Trump administration is also considering a ban on importing products containing cotton from the Xinjiang region of China in response to Beijing’s alleged repression of the Uighur Muslim minority group
• French economic activity recovered to around 95% of pre-crisis levels in August, but will improve little through the end of the year, national statistics agency Insee said
• Boris Johnson’s threat to walk away from the European Union without a trade deal is leaving economists and traders unruffled for now
• Bank of England Chief Economist Andy Haldane warned against extending the government’s flagship coronavirus furlough program, saying continued state support for jobs risks preventing a “necessary process of adjustment”
• Germany’s spending to counter the coronavirus crisis and modernize its economy means the country shouldn’t return to a balanced budget anytime soon, according to a senior Finance Ministry official
• Though Russia last week became only the fourth country to report more than 1 million cases of Covid-19, its economy is coming through the pandemic better than most other big emerging markets
• This year could end today and it would still rival the most challenging periods for the international trading system. But the next 3 1/2 months may bring even more potential disruptions that could secure 2020’s spot as the most turbulent in modern history
• Japan confirmed the scale of its record economic contraction last quarter with figures that were slightly worse than first estimated, highlighting the enormous challenge facing the country

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