U.S. Job Cuts, China Trade Deal, Brazil Rate Decision: Eco Day

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

• One-fifth of small companies in the U.S. are planning to dismiss workers or have already done so after using up their federal Paycheck Protection Program loans, and nearly half of firms said they will need additional aid over the next year, according to a survey. Another poll showed about one in four workers hired back thanks to PPP were told by their employer they may be fired again
• White House and Democratic negotiators driving toward a deal on a final massive virus relief package by the end of the week still must overcome a raw mix of election-year pressures, internal GOP splits and a profound lack of trust between the parties
• More than half of U.S. consumers with credit-card debt said in a survey they will need more bailout money to make minimum payments over the next three months. About the same number said employment will be more critical to avoiding default
• Senior U.S. and Chinese officials are planning to assess the nations’ trade agreement this month against a backdrop of rising tensions between the countries, according to people briefed on the matter
• Canadian households are showing newfound economic optimism, a good sign for the nation’s nascent recovery. After stalling at the end of June, sentiment around personal finances, job security, economic growth and real estate is beginning to march higher again
• Brazil is set to cut its benchmark interest rate more modestly, and perhaps for the last time, as policy makers weigh how much more stimulus they can pump into the coronavirus-ravaged economy without destabilizing financial markets
• Argentina’s bonds jumped to the highest this year after the country struck a deal with its top creditors to restructure $65 billion of debt, setting the stage for the South American nation to emerge from its third default since the turn of the century
  • The historic deal with private creditors merely marks the first stage of an uphill battle to rescue Argentina’s crisis-prone, debt-laden economy
• Bank of England officials could signal on Thursday that the case for more monetary stimulus is growing as a nascent rebound from the pandemic-induced recession risks fading. The central bank will provide an update on its growth and inflation projections, with BOE officials having to grapple with the fact that coronavirus cases are on the rise again in some parts of the nation
• Indonesia’s economy contracted for the first time since the aftermath of the Asian Financial Crisis more than two decades ago, as movement restrictions took a toll on Southeast Asia’s largest economy

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