U.S. Stimulus Talks, Shadow Lending, BOE Decision: Eco Day

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

• Talks to break an impasse over a new virus relief package become increasingly urgent this week with millions of jobless Americans left without additional aid. Republicans and Democrats remain far apart on some of the biggest sticking points, despite claims of some progress on other issues
  • The surging U.S. savings rate means the country can afford to support Americans laid off due to the coronavirus pandemic, while a “hard” lockdown could deliver a faster economic recovery, Federal Reserve Bank of Minneapolis President Neel Kashkari said
  • With the U.S. economic engines struggling to recharge and another employment report due Friday, the next jobless aid bill could determine whether the recovery gains momentum or slips further
• The Fed and other central banks are heading for a collision with shadow lenders. They’ve launched a review of what went wrong with markets in March, when a worldwide dash for cash by investors nearly crashed the financial system
• Argentina’s creditors have approached several international organizations to seek endorsement for a proposal to change the rules that govern some of the country’s overseas securities. While the groups have no formal say over how bond contracts are worded, the idea is that their buy-in would give Economy Minister Martin Guzman political cover to accept the changes
• Bank of England policy makers are set to keep delivering ultra-loose monetary policy even as they disagree over the pace of economic recovery from the coronavirus-triggered recession
• Manufacturers across Asia and Europe are cutting jobs as continued weak demand forces them to take aggressive action on costs
• The final chance for more than half a decade to reshape the European Central Bank’s inner sanctum of policy making will soon spark a tussle for influence between the region’s smaller countries
• The father of modern supply chains is watching the biggest test of his invention with a sense of pride, some regret, and concern that drastic efforts to realign them will ultimately hurt consumers
• Finally, here’s our preview of what to watch this week: Monetary Nerves Fray on Four Continents

©2020 Bloomberg L.P.