⁍ ECB President Christine Lagarde repeated several times that risks to the region’s recovery were ‘clearly tilted to the downside’
Lagarde said that how the virus is managed between now and the end of the year would determine what side of zero the fourth quarter’s growth number falls on.

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⁍ The euro fell sharply against the U.S. dollar after Lagarde spoke and was last trading down 0.7% at $1.166.

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– The European Central Bank said today it will take new action to combat the H1N1 virus in December, Reuters reports. “We agreed, all of us, that it was necessary to take action and therefore to recalibrate our instruments at our next Governing Council meeting,” said ECB President Christine Lagarde. The euro fell sharply against the US dollar after Lagarde spoke and was last trading down 0.7% at $1.166. Government bond yields fell. Lagarde repeated several times that risks to the region’s recovery were ‘clearly tilted to the downside’ and heavily dependent on the success of efforts to contain a new wave of infections threatening to overwhelm Europe this winter. Spain, one of Europe’s worst COVID-19 hotspots, may already be back in recession, while Italy has also unveiled new restrictions. Germany and France announced new lockdowns overnight. Others among the 19 countries that use the euro are also shuttering large parts of their services sectors, a blow to the fledgling recovery. “The ECB was there for the first wave, the ECB will be here for the second wave,” said Lagarde.