Overseas Headlines – October 7, 2020

United States:

U.S. Economy Risks ‘Tragic Scenario’ on Trump’s Stimulus Pullout

“The collapse of pre-election U.S. stimulus talks threatens to inflict another wave of economic pain on Americans and curtail a recovery that’s already slowed. President Donald Trump’s decision Tuesday to walk away from talks with Democrats amid differences over the size of stimulus — even though hours later he appeared to reverse course — likely ended the chances of a relief package before the Nov. 3 election. Aid might be delayed until January or February, after a new Congress is seated, meaning there could be a period of four or five months without additional support for jobless Americans and small businesses.”



Italy’s Love of Cash Is Tested by Conte’s Tax Capture Trick

“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. His government is working on a measure to refund 10% of payment card transactions, handing back a maximum of 300 euros ($354) per person, in a stimulus that runs until 2022, according to officials with knowledge of the plan. As a sweetener, participating consumers will also qualify for a lottery with a prize pot totaling 300 million euros.”



Covid Has Wiped Out the Economic Dreams of a Generation in Asia

“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 in a region home to a majority of the world’s 15- to 24-year-olds. These young people — just at the start of their working lives — are losing jobs at a faster rate than older generations because almost half are clustered in the four economic sectors hurt most by the Covid-19 pandemic, including wholesale and retail trade, manufacturing, business services and accommodations and food service.”



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