More Fed Action, Global Trade Hit, Canada’s Challenge: Eco Day

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

• The Federal Reserve has already unleashed a barrage of new policies to keep the economy out of depression. Investors reckon it’s lining up another one
• Global trade took its biggest hit in more than a decade in March, when the spread of the coronavirus began to take an increasingly heavy toll on businesses
  • China’s position in U.S. trade has retreated, reflecting a shift in supply chains to adjust to higher U.S. tariffs on Chinese goods and risks from an increasingly fraught relationship
• Incoming Bank of Canada Governor Tiff Macklem will face a combination of rising prices and stagnant growth as the economy struggles to recover from the coronavirus pandemic
  • Canada’s economy will continue to require significant amounts of stimulus in the rebuilding phase, according to the outgoing head of the country’s central bank
  • Consumer confidence continues to show signs of improving in Canada, inching higher for a fourth straight week
• As Donald Trump presses states to reopen, government workers and their unions say they’re increasingly concerned that their bosses will force them back to the office without sufficient protection
• As Argentina sunk into its third default this century, the government said it’s preparing to improve a restructuring proposal for creditors, citing a narrowing gap between the two sides
• One of the ECB’s key policy makers signaled that the institution is very likely to boost its emergency bond-buying program
• Two months after Germany’s economy minister vowed to do everything so “no job” would be lost to the pandemic, unemployment has already risen more than during the 2008/2009 financial crisis
  • Confidence among German exporters improved in May after officials within the country and around the world eased lockdown measures
• Australian Prime Minister Scott Morrison laid out his plans to reshape the post-coronavirus economy, saying improved job skills training will be essential for a changing labor market
• China’s top legislature said it plans to revise the law governing the People’s Bank of China this year, amid a broadening of the central bank’s role in recent years

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