U.S. Talks End, Italy’s Experiment, Poland’s Outlook: Eco Day

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

• President Donald Trump ended talks with Democratic leaders on a new stimulus package, hours after Fed Chair Jerome Powell’s strongest call yet for greater spending to avoid damaging the economic recovery
• Italian Prime Minister Giuseppe Conte is about to embark on the country’s most experimental stimulus of the coronavirus crisis yet in a bid to wean citizens off cash and the tax avoidance that comes with it
• German manufacturers unexpectedly cut production, underlining the risks resurgent infections pose for the economic recovery.
• The French economy is set to stagnate in the last three months of the year as uncertainty and the risk of lockdowns stifle investment and consumer spending in the euro area’s second-largest economy
• Record new cases of Covid-19 are reigniting concerns about Poland’s economic outlook and strengthening the argument for keeping interest rates near zero
• Here are the results of Bloomberg Economics’s latest estimate of activity using a set of high-frequency, alternative data
• Central banks’ iron-clad independence appears to be waning due to attacks from politicians, according to a European Central Bank working paper.
• Two custodians of the global economy signaled that while the early days of pandemic recovery were stronger than expected in some countries and industries, a return to full health is likely to be longer and bumpier than they first predicted
• U.S. job openings declined in August for the first time in four months, pointing to a moderation in pace of hiring as the pandemic drags on
• Asia’s fast-growing economies for decades have offered millions of young people the chance to do better than their parents, a path to upward mobility now at risk as youth unemployment soars

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