ECB’s Exit, Italy’s Energy Budget, BOE Rate Decision: Eco Day

(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

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

• Next year the European Central Bank will seek to cushion the exit from emergency bond-buying before a stronger inflation outlook allows for an end to all quantitative easing in 2023, according to economists polled by Bloomberg
• Italy’s government plans to set aside additional funds to address surging energy costs this winter, said people familiar with the matter
• The emergence of the omicron variant and the government’s decision to tighten restrictions have significantly lowered the chances that the Bank of England raises interest rates this month, according to Bloomberg Economics
• The European Central Bank is studying whether to tweak how it reinvests its emergency bond purchases to help countries weather future moments of market turmoil, according to officials with knowledge of the matter
• The European Union raised its concerns over a growing dispute between member state Lithuania and China to the World Trade Organization as efforts by the bloc to get information from Beijing have been rebuffed
• Poland’s central bank is on course to raise interest rates further in the coming months unless the economy takes a sudden turn for the worse, Governor Adam Glapinski said
• Japan’s Prime Minister Fumio Kishida is following last month’s record economic stimulus package by trying to boost workers’ pay as part of his campaign to revamp capitalism so prosperity is shared
• Boris Johnson is again on the back foot over Covid-19, forced by omicron to impose tougher restrictions while he struggles to contain the fallout over allegations his staff broke lockdown rules with a Christmas party
• China’s top leaders are set to convene this week to decide the economic agenda for 2022, and analysts are expecting the focus to shift to supporting growth from deleveraging and regulatory crackdowns
  • The defaults and slow-moving crises of companies in China’s property sector isn’t just hurting bond-holders and apartment buyers - thousands of small suppliers of everything from tiles to cleaning services are waiting to get paid by the likes of China Evergrande Group
• For Australians heading into the summer festive season, the real nightmare before Christmas is unfolding: there’s a shortage of beer
• The Biden administration aims to sign an economic agreement with Asian nations, with Commerce Secretary Gina Raimondo saying it could become “very powerful”
• The FOMC’s wordsmiths face a bigger task than usual in refreshing the language of the policy statement they will issue after next week’s meeting

©2021 Bloomberg L.P.

With assistance from Bloomberg