BOE Turns Hawkish, U.S. Delta Risks, China Trade Talk: 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:

• Chancellor of the Exchequer Rishi Sunak’s quest to repair the U.K.’s pandemic-battered public finances got an added impetus after the Bank of England signaled its concerns over inflation are strong enough to warrant withdrawing some support to the economy
• From event cancellations to consumer behavior, there are growing signs the coronavirus delta variant could slow the U.S. economic recovery
• Starting salaries in the U.K. surged at the fastest pace in at least 24 years as employers try to squeeze more workers out of a shrinking pool of candidates. Meanwhile, U.K. airlines are warning that thousands of jobs could be lost if the government doesn’t offer the industry an extension of the furlough program
• Amid an “everything bubble,” it’s time for the Fed to consider raising rates before it’s too late, according to Howard Marks, co-founder of Oaktree Capital Management
• With China poised to top the Olympic gold medals table for the first time since 2008, it’s taking even bigger steps to make sports a driver of economic growth
• More than 30 U.S. trade groups called on the Biden administration to resume negotiations with China and remove tariffs, which they say are harming the American economy
• India’s central bank kept interest rates unchanged at a record low to support the economy, even as a split appeared over the bank’s lower-for-longer stance
• Bloomberg Economics dives into how exactly how the Fed will define “substantial further progress” in the labor market
• Romania is poised to maintain the European Union’s highest benchmark interest rate
• Japan’s inflation looks set to drop below zero again following a re-shuffling of items in the consumer-price basket

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With assistance from Bloomberg