Opposing U.S. Bets, Trade Olive Branch, Mexico Decision: Eco Day

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get you Thursday started:

  • Nancy Pelosi and Donald Trump are putting down opposing wagers on where the economy is headed and who voters will blame if it goes south
  • The U.S. left largely intact its list of European products worth $7.5 billion targeted with tariffs because of illegal Airbus SE subsidies, opting not to follow through on a threat to substantially increase the economic pain on its transatlantic trade partners
  • Unprecedented government stimulus has allowed more companies to borrow at lower rates than ever before. Yet amid the credit boom, smaller firms that power America’s economic engine are often being shut out, hamstringing the recovery just as it begins
  • Staffing woes are putting the U.S. car industry’s remarkable rebound at risk
  • Brazil, home to the most severe Covid-19 outbreak in Latin America, is emerging with the region’s shallowest recession this year, thanks to a faster economic reopening and temporary stimulus measures
  • Mexico’s central bank is expected to cut its benchmark interest rate to a four-year low of 4.5% in what may be the final monetary easing of the current cycle
  • U.K. Prime Minister Boris Johnson’s government faces a coronavirus dilemma: Withdraw support for jobs and wages too soon and it could tip Britain into an unemployment crisis, extend the aid and it may hinder a necessary restructuring.
  • The People’s Bank of China may have bought government bonds from domestic banks in July, a rare move that has analysts puzzling over the monetary authority’s policy intentions amid a record amount of government debt issuance
  • Finally, here’s how American cities are bracing for a future with even greater inequality

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