U.S. Joblessness, Lasting Scars, Britain’s 20% Slump: Eco Day

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

  • Economists scaled back their pessimism on the employment outlook for this year following the surprise improvement in the May U.S. jobs report, but they continue to see only a gradual decline in the jobless rate in 2021 and beyond

    • About 30% of the increase in total unemployment from February to May can be explained by a reallocation shock, and so risks being long-lasting, according to Bloomberg Economics’ Bjorn van Roye and Tom Orlik
  • Can the global economy hope for a V-shaped recovery, or should we brace for a U-shaped slog? Looking at recent swings in the stock market, the message on the economic outlook is decidedly mixed, according to Bloomberg Economics
  • The global economy is recovering more slowly than expected from the coronavirus pandemic and will bear lingering scars from the experience, according to the International Monetary Fund
  • The U.K. economy plunged by record 20% in April
  • Elke Koenig, the top European official in charge of handling failing banks, warned against using taxpayer money to rescue lenders that were barely surviving before the coronavirus pandemic
  • Japan’s parliament passed a record 31.9 trillion yen ($298 billion) extra budget to shore up the economy amid the coronavirus pandemic
  • Debt is enemy no more in nation Merkel once praised for austerity

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