Trump Pledge on China, Senate Returns, SME Optimism: Eco Day

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

• Donald Trump said he intends to curb the U.S. economic relationship with China, threatening to punish any American companies that create jobs overseas and to forbid those that do business in China from winning federal contracts
• U.S. small-business optimism rose by more than forecast in August, even as owners remain uncertain about the future
• The Senate returns to Washington Tuesday with the Trump administration and Democrats no closer to agreement on a new virus relief package
• The 12 closely contested states that will decide the U.S. election enjoyed healthy economies as the year began, boding well for Trump’s bid for a second term. Now, after the pandemic and ensuing economic collapse, the president’s fortunes in those battlegrounds has shifted radically
• The economic shock from Covid-19 is reshaping Canada’s growth prospects. A look at the underlying drivers of potential growth -- labor input, capital investment, and productivity -- warrant a downward reassessment of the pace of potential growth over this decade, according to Bloomberg Economics
• Disruptions to trade in the coming months may make 2020 is the most turbulent year in modern history
• Israel’s currency is appreciating in disconnect from an economy increasingly threatened by a recent surge in Covid-19 cases, Bank of Israel Deputy Governor said in an interview
• For now, Boris Johnson’s threat to walk away from the European Union without a trade deal is leaving most economists and traders unruffled
• The Bank of England’s chief economist Andy Haldane has thrown his weight behind the government’s controversial plan to let its wage-support program end

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