U.S. Worries, Europe’s PMI Battering, Labor Resilience: Eco Day

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

• Economists say the U.S. is entering a sharp recession, with some projecting gross domestic product is headed for its worst drop in quarterly records back to 1947. President Donald Trump said the American economy can’t remain slowed for too long, but he is happy with the Federal Reserve’s actions and even called Chairman Jay Powell to thank him
• Europe’s economy is taking a battering not seen in decades, the outcome of severe restrictions on businesses and households, according to the first major numbers outlining the damage
  • Bloomberg Economics says the latest PMI may be even underestimating the negative impact
• The region’s labor market looks better placed to face the coronavirus than the U.S. though, thanks to rules that often make it harder for companies to fire workers, and also encourage their retention during a crisis
• German officials are ready to help Italy get through the pandemic and are prepared to support an emergency loan from the euro area’s bailout fund
• The Bank of England’s new 200 billion-pound bond purchase plan has the potential to hit the market at a faster pace than currently advertised
  • The U.K. has pledged more fiscal stimulus to fight the economic fallout from the virus than during the global financial crisis

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