ECB on Debt Cancellation, Recovery Race, China Profits: Eco Day

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Happy Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend.

  • European Central Bank policy maker Francois Villeroy de Galhau hasrejected suggestions that the institution should consider writing off the public debt it bought during the pandemic, saying to do so would backfire
  • European Central Bank Executive Board member Fabio Panetta said he’s open toallowing some banks to resume paying dividends as the economy improves
  • A scarcity of warehouse space because of Christmas demand and the pandemic is putting the U.K. at risk ofshortages of some food products as it prepares to leave the European Union’s single market
  • Prime Minister Boris Johnsonwarned of “long months ahead” in the fight against coronavirus, as his government put most of England into the highest two tiers of new restrictions when a lockdown lifts next week
  • Emerging economies’ downturns and recoveries have taken different paths: China is setting the pace, Turkey’s rebound was strong but unsustainable; Brazil and South Africa will remain below pre-virus peaks through 2021,writes Ziad Daoud
  • A year of crisis for the lira has kept Turksbuying gold at a record pace. Now the appetite for more bullion risks becoming a drag on the currency just as a rally struggles to regain momentum
  • Profits at Chinese industrial enterprisessurged at the fastest pace in a single month in almost nine years in October, a further sign the economic recovery is gathering pace
  • A new adviser to Japanese Prime Minister Yoshihide Sugasays a stimulus plan being drafted now should be more than double the size expected by investors if it is to prevent mass job losses and thousands of suicides
  • Concern about the depth of India’s recession is slowly beingreplaced by optimism that a recovery is taking hold
  • Stephanie Flanders and Lucy Meakindiscuss an intergenerational contract for the pandemic age in their weekly podcast

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