U.S. Credit, Economic Recovery, Italy’s Canceled Crisis: Eco Day

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

• The world’s governments and central banks are shifting from rescue to recovery mode as the deepest slump since the Great Depression shows signs of bottoming out
• The Federal Reserve may have stoked one of the strongest corporate debt market rallies in decades, but it’s too soon to declare an all-clear for credit with the economy facing a potentially rocky road ahead. Chairman Jerome Powell is expected to repeat that the Fed will deploy its full suite of liquidity backstops when he addresses reporters Wednesday
• Local austerity will hold back U.S. rebound like it did in 2010
• The slow awakening of the American economy from its pandemic lockdown helped provide what on Friday became the first positive jobs headline of the summer. The longer-term context remains ugly
  • These state programs offer a path to rehire U.S. workers
• Canada’s labor market is showing signs of strength after months of Covid-19 destruction, but weakness in the jobs market for women is holding back the pace of the recovery
• China’s plan to ramp up spending to support the economy is meeting an inevitable challenge: a slump in income due to the pandemic-induced downturn
• Italy might just be succeeding yet again in shaking off a crisis without having to confront the failings of its economy

©2020 Bloomberg L.P.