BOE Patience, U.K. Worker Shortage, Airport Croissants: Eco Day

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

• Bank of England officials who favor patience on scaling back stimulus will likely dominate the policy discussion this week, with risks to the labor market recovery outweighing a surge in inflation
• The U.K.’s acute labor shortage because of self-isolation is masking the systemic challenge for businesses struggling to recruit after Brexit
• If sales of pre-boarding croissants are any indication, London’s airports have seen the return of close to two-thirds of the customers they would have served in a typical pre-pandemic week
• U.S. President Joe Biden and top White House officials sought to stave off a wave of evictions after a federal moratorium expired, pressing federal, state and local government agencies to act quickly to stop tenants from losing their homes
• The IMF approved the biggest resource injection in its history, with $650 billion meant to help nations deal with mounting debt
• The U.S. Treasury Department began using additional special measures to avoid default after the debt limit was reinstated
• Federal Reserve Governor Christopher Waller said that if the next two monthly U.S. employment reports show continued gains, he could back an announcement soon on scaling back bond purchases
• The U.S. Treasury will scale back its mammoth quarterly sales of notes and bonds in coming months, a shift so large it’s likely to more than counter the Fed’s looming reduction in purchases
• Investors are boosting wagers on another round of policy easing in China after a key factory gauge fell in July and virus cases spiked
• The Reserve Bank of Australia said it will stick with its planned tapering of bond purchases even as Sydney’s protracted lockdown is set to push the economy into contraction this quarter

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