German Crisis Tool, Swiss Damage Control, Jackson Hole: Eco Day

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

• Federal Reserve Chair Jerome Powell headlines this year’s virtual Jackson Hole economic policy symposium, with Bank of England Governor Andrew Bailey and European Central Bank chief economist Philip Lane also speaking
  • The Fed looks likely to keep short-term interest rates near zero for five years or possibly more after it adopts a new strategy for conducting monetary policy
• Germany extended another crisis tool to prevent corporate bankruptcies, a move that critics say will store up bigger problems later for Europe’s largest economy
• Switzerland’s economy saw less damage from the coronavirus lockdown than its larger neighbors, recording a smaller-than-expected contraction in the second quarter
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  The European Union’s trade chief, Phil Hogan, stepped down after growing criticism that he broke virus regulations in his native Ireland.
• China’s toymakers offer signals on how consumers globally are recovering
• China increased its buying of U.S. goods in recent months, and with signs that soybean purchases may also rise, that may be enough to salvage the trade deal even if it won’t reach what it promised
• Kansas City Fed chief Esther George, who has been among the most hawkish Fed policy makers, doesn’t oppose some overshooting of the central bank’s 2% inflation target
• Brazilian President Jair Bolsonaro rejected his economy minister’s plan to finance a new social program without additional spending, fanning investor concerns about the country’s fiscal outlook
• Mexico’s central bank governor defended himself against claims by President Andres Manuel Lopez Obrador that a development bank approved a suspicious loan while he was in charge
• Joblessness may be easing in India as the economy gradually reopens, but wage growth remains subdued -- dashing hopes of a recovery in the consumption-driven economy
• Argentina’s government formally requested negotiations to begin with the IMF on a new program to replace the $57 billion agreement from 2018 that failed to lift the economy

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