The eurozone’s economic recovery ground almost to a halt in September, as a renewed fall in service sector activity countered faster manufacturing growth.

The IHS Markit Composite PMI output index, a GDP-weighted average of the manufacturing and service sector survey gauges, fell from 51.9 in August to 50.4, signalling only a mild increase in business activity.

While the survey continues to indicate that the economy rebounded strongly over the third quarter as a whole, thanks to a strong surge at the start of the quarter (after business activity contracted sharply during the height of the Covid-19 pandemic in the second quarter), the rebound lost almost all of its momentum as the third quarter progressed. As such, the survey indicates an increased risk of the economy sliding back into contraction in the fourth quarter.

Spain suffers greatest hit, only Germany shows resilient recovery

A downturn in service sector activity during September was widely blamed on a second wave of virus infection rates in many countries, with social distancing restrictions curbing recreation, leisure, travel and tourism activities in particular.

Spain’s service sector was especially hard-hit. With the exception of the March-to-May period at the height of the first wave of infections, Spain’s service sector collapse in September was the largest recorded since November 2012.

However, renewed service sector downturns were also recorded in France, Italy and Ireland, while a near-stalling was recorded in Germany, underscoring the broad-based geographical spread of the worsening service sector picture.

Furthermore, due to the relatively large size of service sectors compared to manufacturing, the weakening of the former exerted a marked toll on overall business activity. Output in France, Spain and Ireland consequently contracted in September, and remained broadly stagnant in Italy. Of the four largest eurozone member states, only Germany saw a robust overall expansion of

“We’re getting our information the way everyone else is, in the media,” Pelosi said on CBS’s “Face the Nation.”

As for talks over another pandemic bailout, Pelosi likewise said she is awaiting word from the White House, indicating the administration owes her answers on whether it will accept the latest terms from House Democrats. “We want to see that they will agree on what we need to do to crush the virus so that we can open the economy and open our schools safely,” the speaker said.

Trump, tweeting from the hospital on Saturday, indicated he wants to reach a deal.

It was arguably his strongest endorsement yet of another round of economic relief for a faltering recovery.

Significant hurdles remain. 

The two sides remain at odds over the price tag for the whole measure. House Democrats approved a $2.2 trillion package late Thursday; Treasury Secretary Steven Mnuchin, one of Trump’s top deputies on the matter, has put forward a roughly $1.6 trillion offer. And the two sides remain at odds over assistance for state and local governments, federal unemployment benefits, aid to children and families, and testing and tracing.

Pelosi on CBS said a deal coming together this week depends on whether administration officials “understand what we have to do to crush the virus. You can’t just say, ‘We need to do something, but we’re going to let the virus run free.’ Now it’s even run free in the White House.”

Negotiators face a shrinking window. The Senate is not scheduled to return until Oct. 19. Supreme Court confirmation hearings for Amy Coney Barrett are set to begin in the Senate Judiciary Committee on Oct. 12 and will dominate what remains of senators’ attention for non-election business. And any deal Pelosi strikes with the administration will also need

By Fergal Smith

TORONTO (Reuters) – The Canadian dollar edged higher against its broadly weaker U.S. counterpart on Monday as oil clawed back some of this month’s decline and stock markets rose globally, with the loonie finding some support after posting three straight weekly declines.

Wall Street surged in a broad rally as investors sought bargains among sectors hardest hit by the coronavirus recession, while the U.S. dollar <.DXY> pulled back from a two-month high against a basket of major currencies.

Investors are putting aside for now evidence of rising coronavirus cases, “thinking there is still the vaccine news to mitigate concerns about a second wave,” said Shaun Osborne, chief currency strategist at Scotiabank.

“But it has got to be a potential threat for risk assets going forward and that keeps the CAD a bit more defensive,” Osborne added.

Canada runs a current account deficit and is a major exporter of commodities, including oil, so the loonie tends to be sensitive to the global flow of trade and capital.

U.S. crude oil futures <CLc1> rose 0.9% to settle at $40.60 a barrel, while the Canadian dollar <CAD=> was trading 0.1% higher at 1.3373 to the greenback, or 74.78 U.S. cents. That was a much smaller gain than for some other G10 currencies.

The loonie, which on Friday hit a seven-week low at 1.3418, traded in a range of 1.3353 to 1.3403.

Quebec, the Canadian province hit hardest by the novel coronavirus, reported another sharp increase in daily infections, and media reports said Premier Francois Legault would announce new restrictions for Montreal and the capital, Quebec City.

Canadian government bond yields were mixed across a steeper curve, with the 10-year <CA10YT=RR> up less than a basis point at 0.552%.

Canada’s GDP data for July is due on Wednesday, which could help