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

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

  • Federal Reserve Chair Jerome Powellcautioned 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 expandedat 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 risksrenewing 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’semergency 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 havesurged to records while millions struggle
  • British and European Union negotiators are racing to strike apost-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 lookingfar 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 heconducts a full review of U.S. policy toward China in consultation with key allies

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