Overseas Headlines – October 14, 2020

United States:

U.S. Economy Slowly Grinds Ahead as Virus Restricts Recovery

“After a rapid rebound in the third quarter, the U.S. economy is settling into a more moderate pace of improvement as hiring, spending and travel remain constrained by Covid-19. Bloomberg Economics created a weekly dashboard of high-frequency, alternative and market-based data to track the economy’s plunge into recession and eventual recovery. About 331,000 new virus cases were recorded last week — an eight-week high — underscoring the economy’s inability to fully return to its pre-pandemic strength without a vaccine. Even so, some measures, such as restaurant bookings and a measure of new job postings, improved from the prior week.”



German Recovery Loses Steam

“Germany’s economy is losing steam but will do slightly better than government forecasts as fears grow over rising coronavirus infections, according to the country’ s five leading research institutes. Gross domestic product will contract by 5.4% in 2020 and grow 4.7% next year, the experts predicted in their latest bi-annual outlook published Wednesday. In their spring report, they expected a contraction of 4.2% this year and growth of 5.8% in 2021.”



Bank of Korea Set to Extend Hold as Virus Eases: Decision Guide

“The Bank of Korea is likely to keep its benchmark interest rate on hold on Wednesday, amid signs of economic improvement and a tapering of local coronavirus cases. All 21 analysts surveyed by Bloomberg expect the central bank to maintain its seven-day repurchase rate at 0.5% for the third consecutive meeting, having cut by 75 basis points earlier this year.”




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