Central Banks Shift, Spain’s Furlough, Swiss Vacancies: Eco Day

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

  • Central banks are shifting from saving their economies from recession to ensuring they recover
  • The European Union state with the bloc’s worst infrastructure is building train lines and roads at the fastest pace since communism collapsed to help counter the economic chaos wrought by Covid-19
  • Spain is prepared to extend its furlough program beyond January, Social Security Minister Jose Luis Escriva said, in the clearest statement yet on the future of the wage-support policy
  • German factory orders rose for a fourth month in the latest sign that the country’s industry-heavy economy is faring better than its services-focused peers in recovering from the pandemic
  • Frank Elderson was picked by euro-area finance ministers as the sole candidate to succeed Yves Mersch on the ECB Executive Board
  • Job vacancies in Switzerland were 15% below their level a year earlier in the third quarter, according to an index by Adecco Group and the University of Zurich
  • Australia’s government will lay out a spending program to resuscitate the economy and generate jobs for the hundreds of thousands of people left unemployed by the pandemic
  • South Korea’s inflation unexpectedly picked up in September, as heavy summer rainfall and the national Chuseok holiday boosted food prices
  • Meanwhile, South Korean companies are reluctant to relocate home from China, despite the governments’ best efforts to draw them back amid the pandemic and U.S.-China trade tensions highlighting the risks of over-reliance on China as a manufacturing base
  • India’s government appointed three new external members to the central bank’s committee that decides interest rates, allowing policy meetings to resume after last week’s delay
  • The International Monetary Fund said the Brazilian economy faces “exceptionally high and multifaceted” risks as it continues to grapple with the coronavirus pandemic and its impact on the country’s debt dynamics

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