Pre-Election Stimulus, Central Banks Plea, Peso Issue: Eco Day

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

• House Speaker Nancy Pelosi and Senate Majority Leader Mitch McConnell have dug into their opposing stances on pandemic relief, effectively killing off chances for a pre-election stimulus for the economy
  • President Donald Trump’s once-tight grip on Republican lawmakers is showing signs of slipping as he falls further behind Democrat Joe Biden, making the GOP path to keeping control of the Senate increasingly fraught
• The world’s top central banks are urging governments to put concerns about mounting debt aside for now and keep spending until the economic recovery from coronavirus is complete
  • A Bloomberg Economics model of fiscal and monetary interaction in four big advanced economies shows that fiscal policy has had a material impact, especially in Europe
• After the economic recovery gained traction in the latter half of September, activity weakened in the second week of October, particularly in European countries and Canada, according to Bloomberg Economics gauges
• Former Bank of Canada Governor Stephen Poloz said monetary policy is near its limits and fiscal policy should be the primary tool for lifting the economy out of the hole created by Covid-19
• Even a once-in-a-century pandemic isn’t enough to cool the Canadian housing market, with prices nationwide now forecast to end the year higher than where they started
• Argentina’s government is not going to devalue the peso, President Alberto Fernandez said Tuesday night amid widespread speculation on the issue

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