ECB on Market Moves, Draghi’s Stimulus, Biden’s Plan: Eco Day

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Happy Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend.

  • The European Central Bank will pay close attention to the drivers behind changes in financing conditions and the speed of any shifts, and won’t always wait for scheduled policy meetings if it needs to react to safeguard the economy, Executive Board member Isabel Schnabel said
  • Italian premier Mario Draghi needs a new stimulus program within weeks to bankroll higher monthly lockdown costs of as much as 15 billion euros ($18 billion) and keep the economy afloat, people with knowledge of the matter said
  • The U.K. had its best two weeks for job advertisements since the start of the pandemic a year ago, a group representing recruiters and employers said
  • U.S. President Joe Biden said he will unveil his long-term economic rejuvenation plan next week, promising increased support for the middle class and a major ramp-up in investment and infrastructure
  • Federal Reserve Chair Jerome Powell​ said the U.S. central bank would wait until the economy has “all but fully recovered” to pull back the extraordinary monetary support it rolled out in response to the Covid-19 pandemic
  • A word of warning for bond traders banking on a Fed rate hike as soon as next year: Since 2008, markets have underestimated how patient officials can be in lifting borrowing costs from zero
  • China’s economic rebound continued in March, as factory activities accelerated amid strong global orders and recovering domestic demand. This chart shows why that means little worry for Beijing when it comes to its 2021 growth target
  • China’s central bank estimated the maximum the economy can expand without fueling inflation, known as the potential growth rate, is under 6% in the next five years. The monetary authority separately said its planned digital currency will co-exist with technology platforms like Ant Group Co.’s Alipay and Tencent Holdings Ltd.’s WeChat Pay
  • The Suez Canal blockage is forcing container carriers and other vessels to weigh costly and time-consuming voyages around Africa that threaten to destabilize the fragile underpinnings of global trade
  • Declines in Tokyo consumer prices eased for a third month, improving slightly more than expected, as energy costs firmed up and progress on virus containment finally brought an end to the capital’s state of emergency
  • Three current and former members of Taiwan’s central bank board are calling for an overhaul of its currency policy, saying efforts to tamp down on the local dollar’s appreciation is increasingly having a negative effect on the economy

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