BOE Bailey, Brexit, ECB Bond Buying, China Growth: 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 Governor Andrew Bailey hit back at critics who accused him of misleading markets before this month’s interest rate decision, saying the fault lay with traders
  • Also, Bailey told U.K. lawmakers he is “very uneasy about the inflation situation”
• Boris Johnson said it would be “perfectly legitimate” for the U.K. to suspend part of the Brexit deal with the European Union, though his government still wants to negotiate a solution to their escalating trade spat
• The European Central Bank is conducting bond purchases with an informal limit of just under 50% of each country’s debt issuance, a never previously revealed level that hints at the scale of support it has been willing to provide during the crisis
• Hungary may bend to currency-market pressure and raise borrowing costs at a faster clip to tackle soaring inflation despite the central bank’s pledge to keep the interest-rate hikes slow and gradual
• Senate Banking Chairman Sherrod Brown said he was told by White House officials to expect an “imminent” announcement about President Joe Biden’s pick to chair the Federal Reserve
• China’s economy is slowing to the lows seen way back in 1990 -- a price President Xi Jinping seems willing to pay to reduce its dependence on the property sector
• A growing chorus of market watchers is saying the Federal Reserve may have to speed up its reduction of asset purchases in light of the fastest inflation in 30 years
• The U.S. Senate will add an expansive plan to help the U.S. better compete with China and bolster the U.S semiconductor industry to Congress’s annual defense authorization bill, Majority Leader Chuck Schumer said
• At the same time, Presidents Xi and Biden spoke of the need for cooperation in their but first summit meeting

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