Capital Pains, Canada’s Global Warning, Policy Potency: Eco Day

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

  • President Joe Biden will propose almost doubling the capital gains tax rate for wealthy individuals to help pay for social spending that addresses long-standing inequality, according to people familiar
  • The Bank of Canada sent out a warning to investors this week that inflation still matters. The question is whether Canada’s situation is unique, or foreshadowing the start of a global exit from stimulus
  • The Australian central bank’s bond-buying program is set to become more potent as 10-year high iron ore prices combined with a hiring spree narrow the deficit and reduce government financing needs
  • The Federal Reserve will need to provide “clear and well-telegraphed communication” on the pace of asset purchases when policy normalization draws closer to avoid financial-market volatility, according to an IMF blog post
  • ECB President Christine Lagarde said the institution isn’t discussing the phasing out of its emergency bond buying even as it sees signs that the economy is starting to shake off the coronavirus pandemic
  • Applications for U.S. state unemployment insurance unexpectedly plunged to a fresh pandemic low as the jobs recovery gathers steam
  • Venezuelan opposition leader Juan Guaido plans to make the biggest withdrawal from offshore accounts frozen by U.S. sanctions to purchase Covid-19 vaccines as well as pay wages, legal fees and expenses
  • Bodies piling up at crematoriums and burial grounds across India are sparking concerns that the death toll from a ferocious new Covid-19 wave may be much higher than official records
  • For many, the pandemic has altered where we work, how we work and when we work. But will that change last forever? Stephanie Flanders and Lucy Meakin discuss in their latest Podcast

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