Stimulus Collapse, U.S. Unemployment, Mexico Support: Eco Day

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

• The collapse of pre-election U.S. stimulus talks threatens to inflict another wave of economic pain on Americans and curtail a recovery that’s already slowed
  • President Donald Trump stunned campaign advisers and allies in Congress by single-handedly torpedoing any chance of a fresh coronavirus stimulus, saddling himself with the blame for any more layoffs and market losses in the final weeks before the election
  • The absence of a deal could subtract roughly five percentage points from fourth-quarter GDP growth, according to Bloomberg Economics
• Job losses in battleground states are mounting as mail-in ballots are already being cast, just 27 days to election day
• The International Monetary Fund called on Mexico to implement short-term fiscal and monetary support to “limit the damage from the pandemic” and secure a faster economic recovery
• Prime Minister Justin Trudeau managed to pass an ambitious economic plan to get Canada through a second wave of Covid-19, averting an election at least until a fiscal update scheduled for later this fall
• Central banks’ iron-clad independence appears to be waning due to attacks from politicians, according to a European Central Bank working paper
• Asia’s fast-growing economies for decades have offered millions of young people the chance to do better than their parents, a path to upward mobility now at risk as youth unemployment soars in a region home to a majority of the world’s 15- to 24-year-old
• After a period of economic weakness in August and September, the pace of recovery in most advanced economies gained traction in the past two weeks, though activity is still far below pre-Covid levels, according to Bloomberg Economics gauges

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