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Fed Testimony, Ghost Towns, Europe’s Tourists: Eco Day

Fed Testimony, Ghost Towns, Europe’s Tourists: Eco Day

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

  • Federal Reserve Chairman Jerome Powell will deliver a cautionary message about the U.S. economy and Covid-19 when he appears twice this week on Capitol Hill
  • One-third of U.S. job losses are at risk of becoming permanent
  • College towns in the U.S. fear that Covid-19 will leave them as ghost towns if students don’t return to campuses in the fall
  • The fragile recovery in China’s economy is pointing to a long road back for the rest of the world too, with few signs that a V-shaped rebound will be possible amid weak consumer demand
    • The global economy is in a new expansion cycle and output will return to pre-coronavirus crisis levels by the fourth quarter, according to Morgan Stanley economists
    • High-frequency and alternative indicators paint a picture of the global economy that is less bleak than it was a few weeks ago, according to Bloomberg Economics research
  • Chile’s government reached a deal with opposition lawmakers for a $12 billion stimulus package over the weekend as infections hit a record
  • As Germany and a raft of other European countries ease travel restrictions from Monday, an immediate form of aid for the region’s most vulnerable economies may come in the shape of tourists
  • Retail outlets in England selling non-essential items are opening Monday for the first time since March. Getting people back into stores is crucial for the economy
  • The Bank of Japan is expected to leave its main policy levers untouched Tuesday as it assesses a raft of measures already taken. The Bank of England, which updates policy Thursday, is seen boosting bond-buying, rather than venturing into the controversial realm of negative interest rates
  • Finally, here’s our preview of what to watch this week

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