U.S. Stimulus Vote, Europe’s Damage, Johnson’s Warning: Eco Day

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

  • Senate Democrats blocked Majority Leader Mitch McConnell’s attempt to advance a coronavirus economic rescue package after congressional leaders disagreed on how to spend nearly $2 trillion
  • Europe is about to learn how badly the coronavirus has already scarred its economy, with the true extent of the damage still hard to grasp.
  • Germany may borrow as much as 350 billion euros ($370 billion) in an unprecedented financing push to cushion the fallout from the coronavirus pandemic, as ECB Governing Council member Jens Weidmann described a recession in Germany as “inevitable”
  • The European Central Bank, which announced a 750 billion-euro emergency program to fight coronavirus fallout, also has many other options available to help the bloc get through the crisis, council member Isabel Schnabel said
  • Morgan Stanley economists said the coronavirus will inflict a deeper recession on the U.S. than
  • previously expected, including a record 30% drop in second-quarter GDP
  • St. Louis Fed chief James Bullard predicted U.S. unemployment may hit 30% in the second quarter because of coronavirus shutdowns, with an unprecedented 50% drop in GDP
  • The U.S. is entering a recession. The ultimate fear is that could turn into a protracted malaise that has some flavor of a depression
  • Boris Johnson warned Britons they face “tougher measures” including a potential full lockdown if they continue to ignore calls to stop social gatherings, while British regulators asked publicly traded companies to delay reporting their results for at least two weeks
  • China’s government is talking up the prospects for a rapid economic rebound from the coronavirus, even as the global economy sees further lockdowns to curb its spread
  • New Zealand’s central bank has taken the historic leap to quantitative easing to try to limit a looming recession as the economic impacts of the coronavirus outbreak intensify

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