Europe Compromise, U.S. Divide, Mnuchin-Pelosi Stimulus: Eco Day

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

• EU leaders were given a new compromise proposal for a 750 billion-euro ($858 billion) recovery fund to help the bloc overcome the economic fallout from the coronavirus pandemic
• In the U.S. economy, activity is faltering in regions where new cases have increased, including the Sunbelt and West. In the Northeast, where the pandemic has come under more control, activity is showing improvement, writes Eliza Winger
• Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi will kick off a first round of negotiations on the next virus relief plan even as Republicans are still hashing out an agreement
• The U.K. suspended its extradition treaty with Hong Kong and placed it under an arms embargo in moves likely to exacerbate a diplomatic spat with China
• India’s hinterland is witnessing a consumption revival, which at first glance looks like good news for Asia’s third-largest economy
• More jobless and depressed economic activity point to the U.S. recovery stalling
• Australia’s government will extend a flagship wage subsidy program and increased unemployment payments beyond the end of September as it seeks to shore up the economy and stop the jobless rate spiraling even higher
• Champagne receptions at lakeside villas. Rosé luncheons at the Intercontinental Hotel. Even during a pandemic, the feting of Geneva’s trade diplomats continues apace
• For decades, Hong Kong served as a bridge between China and Taiwan. Now, that appears to be just one more thing that’s changing in the former British colony

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