U.K. Job Losses, ECB Decision, China Returns to Growth: Eco Day

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

• U.K. jobless claims fell in June and the economy lost fewer jobs than expected in the three months through May, as government income support kept millions of people in work amid the coronavirus lockdown. Almost one-third of businesses expect to cut jobs in the next three months, however
• ECB officials meet today aware that they’ve probably done enough to fight the virus crisis for now, but still face an uneasy summer
• Bank of England Governor Andrew Bailey told lawmakers rates are likely to stay low for a long time
• The Bank of Canada pledged to keep interest rates at historically low levels for years to come
• China’s economy returned to growth in the second quarter, marking an important milestone in the global struggle to recover from the Covid-19 pandemic
• The International Monetary Fund warned that the bankruptcy rate for small- and medium-sized businesses may triple this year
• The $2 trillion rescue that Congress passed in March ranks among the most aggressive in history. Yet in predominantly Black neighborhoods in cities like Cleveland, it’s evident who’s being left behind
• President Donald Trump has indicated to aides that he doesn’t want to further escalate tensions with Beijing, and has ruled out additional sanctions on top officials for now. Meanwhile, 50% of voters in a new poll say they trust Joe Biden to do a better job managing the U.S. economy
• The Federal Reserve should consider holding interest rates near zero until U.S. inflation is above its 2% target, Philadelphia Fed President Patrick Harker said, echoing his colleague Lael Brainard
• Optimism about a nascent recovery in the U.S. was dampened by increased uncertainty over the path of the coronavirus, according to a new Fed report
• Dealing with China is so complex it’s produced its own lexicon: Engagement. Containment. Confrontation. Constrainment. Even “con-gagement”

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