Relief Plan, European Stimulus, U.K. Income Shock: Eco Day

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

• Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi will kick off a first round of negotiations on the next virus relief plan even as Republicans are still hashing out an agreement among themselves
• Economists say $1 trillion or more is needed to avert U.S. disaster
• Judy Shelton, President Donald Trump’s controversial pick to join the Federal Reserve’s Board of Governors, was poised to clear a key hurdle to confirmation after a key Republican senator said he’d vote in her favor
• Governments that raced to the rescue as the coronavirus hit their economies now face the dilemma of whether to extend their massive bailouts of businesses and labor markets
• In all major advanced economies the pace of recovery has flattened as some countries approach their pre-crisis levels of activity. Within that overarching trend, the gap between leading euro-area countries and the lagging U.K., U.S. and Canada has widened in the past week
• Zero interest rates can be a more effective tool for central banks to get individuals borrowing and making riskier investments than when the cost of money turns negative, according to a new study
• European Union leaders agreed on an unprecedented stimulus package worth 750 billion euros ($860 billion) to pull their economies out of the worst recession in memory and tighten the financial bonds holding their 27 nations together
• U.K. households are experiencing the biggest income shock since the 1970s oil crisis, and the pain is far from over as the government prepares to withdraw the support deployed to help the country through the coronavirus crisis
• Martin Guzman, Argentina’s 37-year-old economy minister, an academic leftist with zero experience in billion-dollar-credit talks, is in charge of historic debt negotiations

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