U.S. GDP Day, WTO Race Roadblock, ECB Rates: Eco Day
(Bloomberg) -- Welcome to Thursday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:
The sharpest U.S. rebound in the history of post-WWII GDP will leave the level of economic activity 3.7% below the pre-crisis peak. Yet focus has already shifted to gauging the momentum in the current quarter amid rising Covid-19 cases and heightened policy uncertainty. The sustainability of the recovery going into 2021 remains an open question, according to Bloomberg Economics
- House Speaker Nancy Pelosi said she hopes the current selloff in U.S. stocks will prompt President Donald Trump to agree to Democratic demands in stalled stimulus talks.
- The U.S. faces “slow going” with no additional fiscal support likely for several months, said a former New York Fed chief William Dudley
- Traders convinced a revival of U.S. price growth is at hand can now double down with a bet that will profit not only from rising inflation, but also from expectations for more
- The WTO’s effort to select a leader and chart a new course for the global trading system hit a roadblock after the Trump administration vetoed a bid by front-runner Ngozi Okonjo-Iweala. Meantime, EU negotiators agreed to reinforce the bloc’s trade-sanctions powers in response to the U.S. challenge to the global commercial order
- More Canadian small and mid-size firms intend to make capital expenditures in the next three months, according to an industry survey by the Canadian Federation of Independent Business
- Brazil reinforced plans to hold its benchmark interest rate at a record low for the foreseeable future, downplaying encroaching inflation risks in a move that may fan financial market angst
- European Central Bank officials must decide today whether the renewed wave of coronavirus infections and lockdowns on the continent require an immediate dose of extra monetary support
- In this week’s Stephanomics podcast, Bloomberg renewables reporter Jess Shankleman reports from London and host Stephanie Flanders talks with economist and policymaker Lord Nicholas Stern about how he thinks addressing climate change can be a sustainable route to growth
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