Powell Testimony, U.S. Job Participation, Italy Warning: Eco Day

(Bloomberg) -- Good morning, Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

  • Investors will keep a close eye on Jerome Powell’s second day of congressional testimony this morning. He said yesterday that growth looked uneven
  • The European Commission issued another sharp warning on Italy, saying the country’s massive public debt and long-lasting productivity weakness are risks for other countries in the region
    • Meanwhile, Germany’s central bank continued raising risk provisions to prepare for higher interest rates even as the prospect of an increase seems to have diminished amid the euro area’s worsening economic outlook
  • Economic confidence in the euro area declined less than economists expected thanks to a solid service sector, suggesting the trade war-induced slide in sentiment over the past year may be bottoming out
  • U.K. employers are now less optimistic than at any point since the Brexit referendum, while business leaders in Germany’s heartland are moving ahead with preparations to pass the pain on to British customers
  • China’s economy is showing signs of recovery according to early indicators tracked by Bloomberg Economics, and Goldman Sachs says the global economy already has hit bottom
  • Japan’s new guest worker program is set to grant five-year residency permits to 345,000 low-skilled workers
  • Finally, here’s our weekly economic research round-up, including a look at how America’s job market has still has some upside as disabled workers return

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