BOE Sees Spending Surge, China’s Trade, Biden Pressure: Eco Day

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Happy Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to take you through to the weekend:

  • The Bank of England expects the biggest surge in household spending since 1988 -- when Margaret Thatcher was prime minister -- to help power a strong economic rebound after the pandemic
  • Voting has finished in crucial British elections set to shape the future of the U.K., in the first electoral test for Prime Minister Boris Johnson’s government since the coronavirus pandemic struck
  • Danish banks last year made a combined net profit of 931 million kroner ($151 million) on negative interest rates, measured as losses from deposits at the central bank against profits from charging clients for deposits, newspaper Borsen reported. Elsewhere, Polish banks’ first-quarter results are topping analyst forecasts as generous state support compensates for still-weak lending volumes
  • Norway’s central bank says it’s still on track to begin the first interest-rate tightening cycle of the advanced world since the coronavirus crisis struck
  • South Africa is likely to avoid a credit-rating downgrade on Friday, when Moody’s Investors Service is scheduled to review its assessment of the nation’s debt: chart
  • As the pullback in Federal Reserve monetary support draws inexorably closer, investors are striving to taper-proof their portfolios with 2013’s volatility still fresh in their minds
  • China’s exports rose more than expected in April as global stimulus fueled demand, while imports jumped on surging commodity prices
  • In the pandemic’s second year, some familiar worries -- about inflation, capital flight or public debt -- are starting to surface across the developing world. Except in one corner
  • President Joe Biden’s plan to raise $700 billion over a decade from increased tax audits of the wealthy and corporations -- a major funding source for his economic-investment proposals -- will probably take years to bear fruit and faces skepticism that the figure is realistic
  • The Biden administration is likely to maintain pressure on China by preserving limits on U.S. investments in certain Chinese companies imposed under former President Donald Trump
  • Japanese wages unexpectedly snapped an 11-month losing streak in March, offering a little more spending power for those with full-time jobs as the country looks to extend its state of emergency in Tokyo and some other big cities until the end of May
  • The IMF sees strong economic arguments for removing barriers to vaccine production and distribution, while cautioning that a waiver on intellectual-property protections must be accompanied by other steps

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