U.S. Virus Deal Drags On, Euro-Area GDP, China Reforms: Eco Day

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

• The U.S. Senate left Washington for the weekend after a fourth day of negotiations yielded little substantial progress on narrowing differences between Republicans and Democrats on a plan to bolster the coronavirus-ravaged U.S. economy
• The collapse in inventories detailed in the U.S. quarterly GDP report sets up the economy for a rebound in production this quarter as demand stabilizes
• While the drop in U.S. GDP -- an astounding 32.9% when annualized -- was widely anticipated on Thursday, the jobless claims figure was not
• Mexican tax revenue declined 10% last month and officials forecast a wider budget deficit in 2020

• The euro-area economy plunged into an unprecedented slump in the second quarter

  • Spain took the biggest hit, shrinking 18.5%, while French and Italian output also dropped by double digits
• Chinese President Xi Jinping called for a greater push on reforms to stimulate domestic demand, as the economy continues its steady recovery from the coronavirus slump
  • Separately, China’s July purchasing managers’ indexes suggest the economic recovery remains on track, though the pace of the rebound might have peaked, Bloomberg Economics’ Chang Shu writes
• Senior officials from Japan’s finance ministry, central bank and financial regulator met on Friday after the yen gained to the highest level since March

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