Jobs Head-Scratcher, Company Optimism, Inheritance Tax: Eco Day

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

  • Fed officials say April’s disappointing employment report doesn’t change the upbeat outlook for the U.S. labor market amid strong consumer demand
  • Optimism among U.S. small businesses rose in April to a five-month high, driven by better sales expectations and improving earnings trends
  • U.S. President Joe Biden stepped up defense of his $1.9 trillion pandemic-relief bill after Republicans blamed the shockingly weak gain in April employment on federal benefit payments persuading those out of work to hold off on getting a job
  • Ship congestion outside the busiest U.S. gateway for trade with Asia persisted over the past week amid a steady flow of imports at some of the highest ocean freight rates on record
  • Gas stations along the U.S. East Coast are beginning to run out of fuel as North America’s biggest petroleum pipeline races to recover from a paralyzing cyberattack that has kept it shut for day
  • Inheritance tax could make a return to the political agenda after decades of declining use as governments try to repair public finances and address widening inequality after the pandemic
  • The European economy just flopped into a double-dip recession, but it already seems to be bouncing back and could even start outpacing the U.S., providing another engine for global growth
    • Investor confidence in Germany’s economic recovery jumped to the highest level in more than 21 years after the country’s vaccine rollout gained speed
    • German inflation could briefly climb above 3% as the economy recovers, but the European Central BAnk Executive Board member Isabel Schnabel sees no sign of accelerating inflation becoming entrenched in the euro area
    • Options traders betting on greater chance of ECB rate hikes
  • China’s births fell to their lowest in almost six decades amid the coronavirus pandemic last year, putting the country’s population on course to peak within the next five years and adding pressure on Beijing to step up reforms to maintain economic growth as the workforce shrinks
    • A surge in China’s factory-gate inflation -- spurred by a global commodity rally -- showed few signs of significant pass-through to downstream consumer prices in April
  • Check out Bloomberg’s new Pret Index, a tracker of sales at the ubiquitous British restaurant chain. It suggests London’s workers are taking their time returning to the office

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