U.S. Scarring Signs, Fiscal Plea, French Recovery Slows: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the week:

• The pandemic-induced downturn initially had hints of being the sharpest but shortest U.S. recession on record. Now there are increasing signs of economic scarring that resemble past slumps
• It’s “incredibly important” the U.S. delivers another round of fiscal policy measures to aid the economy as it weathers the coronavirus pandemic, said Chicago Fed President Charles Evans. The executive actions signed by President Donald Trump on Saturday add up to a thinning lifeline of support for an already-stalling U.S. economic recovery, but may refocus lawmakers on getting back to the table for negotiations

• The pace of France’s economic recovery is slowing, the country’s central bank said, confirming expectations of a prolonged period before output catches up with pre-crisis levels

  • More economic upheaval is on the horizon in Europe as plans to end the unprecedented support for workers
• Figures this week are expected to show Britain had the biggest economic contraction in Europe in the second quarter
  • Meanwhile, one in three U.K. employers plans to cut staff this quarter, highlighting the growing risk of a labor market crisis
• China continues to supply evidence that the nation first into the coronavirus crisis will be the first major economy to pull out of it, with data this week set to show an accelerating recovery. Bloomberg economist David Qu writes that the pick up in CPI will be short-lived and the PBOC will have room to ease
• The coronavirus pandemic is forcing India’s children out of school and into farms and factories to work, worsening a child-labor problem that was already one of the most dire in the world

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