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ECB Opposition, London Job Market, Russia Rate Decision: Eco Day

ECB Opposition, London Job Market, Russia Rate Decision: Eco Day

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

  • Bundesbank President Jens Weidmann and Belgian Governor Pierre Wunsch opposed new European Central Bank policy guidance that signals a longer period of record-low interest rates, according to officials familiar with the matter
  • Christine Lagarde promised the ECB has learned from the errors of past crises and won’t derail the current economic recovery by withdrawing emergency support too early. Bloomberg Economics’ Tom Orlik thinks the next step will be an increase in asset purchases at the September meeting
  • London’s job market has sprung back to life, becoming a hot spot for the first time since the pandemic closed vast sections of the economy
  • The British government is rolling out daily Covid testing to allow workers in critical services in England to avoid self-isolation, amid concerns that mass staff shortages are threatening crucial supplies
  • The Bank of Russia may increase interest rates by the most since the ruble crisis in 2014 as it struggles to contain surging inflation
  • During the second half of this year China’s central bank will lower the amount of money banks have to keep in reserve once more and economic growth will also slow down, according to economists surveyed by Bloomberg
  • Global goods trade remains a bright spot for a world where more economies are battling an abrupt revival of Covid cases and deaths
  • Fresh lockdowns and restrictions in Asia brought on by the delta Covid variant are making the region’s pursuit of travel bubbles look increasingly fruitless
  • Devastating floods in the Chinese city of Zhengzhou are raising concern about a potential spike in inflation. While there may be some upward pressure, any impact would be mild and unlikely to last beyond the near term, Bloomberg Economics’ economist Eric Zhu writes

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