U.S. Recession, Recovery Plan, Europe Improvisation: Eco Day

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

  • The novel coronavirus has spurred what will likely be the worst recession in generations as the U.S. economy grinds to a halt and millions lose their jobs
  • Meanwhile, the White House is developing plans to get the U.S. economy back in action that depend on testing far more Americans for the virus than has been possible to date
    • The Treasury Department is asking Congress for $250 billion more to aid small businesses, and Secretary Steven Mnuchin said he expects the House and Senate to act as soon as this week
  • Joe Biden, frontrunner for the Democratic presidential nomination, said the economic recovery from the coronavirus would likely be the “biggest challenge in modern history” and an opportunity to address longstanding structural problems
  • European Union finance ministers will try again to agree on a recovery plan for the bloc after their 16-hour teleconference on Tuesday ended with no deal
  • Shutting down an economy is far from simple, and European governments have been forced to improvise as they try to contain the coronavirus
  • U.K. businesses are struggling to access the cash they need as government efforts fall short. And Bloomberg Economics estimates a V-shaped recovery in the country is now in doubt
  • The coronavirus shock has influential Chinese economists and officials engaging in a previously unimaginable debate: should Beijing drastically reduce its economic growth target or even abandon it altogether?
  • Job sites like Indeed.com are showing a slump in listings, with the U.K. and Canada hardest hit so far

©2020 Bloomberg L.P.

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