Europe’s Job Crunch, Fed Tapering, Taiwan Tottering: Eco Day

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

  • The labor shortage that’s hitting the U.S. as the nation rebounds from the pandemic is also coming to Europe, where it could prove even more difficult to fix
  • Some Federal Reserve officials were open to a debate at “upcoming meetings” on scaling back their massive bond purchases. Atlanta Fed President Raphael Bostic says it’s still too soon to begin withdrawing monetary-policy support for the economy
  • Britain’s city-center apartments and smaller properties are selling again after a loosening of lockdowns that sent buyers fleeing for the suburbs
  • The U.K. is pushing the G-7 to impose mandatory reporting of environmental risks, as industry faces higher carbon costs after the country debuted its post-Brexit emissions trading system
  • Taiwan is battling a surge in Covid cases and drought-triggered power outages, potentially derailing one of Asia’s economic success stories. In the Philippines, snaking queues at Manila food banks have become a common sight as the economy continues to struggle
  • Energy and commodities futures swooned under the weight of inflation fears and concerns about the resilience of Chinese demand. Meanwhile, China’s cabinet stepped up its rhetoric around commodity prices, announcing steps to curb markets to keep inflation pressures at bay
  • Japan’s target of balancing its budget by fiscal 2025 is essentially out of reach and pushing for it too hard would derail the economy, according to a Finance Ministry official
  • Bloomberg Economics’s U.S. wage inflation dashboard shows pockets of pressure, but only tepid gains for most workers. Meantime, the Citi U.S. Economic Surprise Index is close to going negative
  • With hundreds of millions of people now vaccinated against Covid-19, the outbreak should begin to die down in places where many people have been inoculated. But that isn’t happening everywhere
  • The Biden administration’s proposal to dramatically expand the inheritance tax bill for wealthy Americans is running into headwinds with Democrats on Capitol Hill
  • Argentina’s new ban on exports of its famed beef won’t quell runaway inflation, if previous interventions are any guide

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