Permanent Scars, European Contraction, ECB Decision: Eco Day

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

• Jerome Powell voiced concern that the coronavirus crisis could leave permanent scars on the U.S. economy and said policy makers of all stripes needed to do more to limit the damage
  • The Federal Reserve Chairman gave a somber assessment of the outlook in a teleconference after the central bank left interest rates pinned near zero
  • The U.S. may need more than a bailout to recover from Covid-19
• The coronavirus ground nearly all business in Canada to a temporary halt. Now it’s also threatening one of the nation’s main drivers of long-term growth: foreign students
• The world economy is entering a new stage of the coronavirus crisis as governments inch toward easing restrictions. It’s a phase that entails stark trade-offs between economic growth and risking another wave of infections and death
• The European Central Bank will decide on Thursday if more than 1 trillion euros ($1.1 trillion) in asset purchases and a generous lending plan are enough to keep companies and households afloat during an historic slump
  • Most economists predict the Governing Council will pause after a series of actions to support the economy; a minority including Goldman Sachs, though, expect an immediate bump-up in stimulus
  • The euro-area economy plunged into a record contraction, an outcome that will add more urgency to controversial demands for joint government fiscal support
• China’s first official data for April suggest the economy has split into two tracks, with a domestic rebound undercut by weak overseas demand
  • At least 50 cities across China have distributed vouchers to get people shopping after the lockdown
• Working in a meat processing plant has always been grueling and dangerous. With Covid-19, it’s even scarier
• Finally, don’t miss this week’s episode of the Stephanomics podcast

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