ECB’s Strategy, Central Bank Rethink, New IMF Reserves: 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:

• The European Central Bank’s biggest strategic rethink since the creation of the euro sets the terms of engagement for a half decade of post-pandemic monetary debates -- even if it stops short of signaling future policy. Here’s how the bank’s new inflation target will shape the economy
• Group of 20 finance ministers are poised to endorse a global tax overhaul and call for finishing work on the details of the accord by October
• The International Monetary Fund neared final approval to create a record $650 billion of new reserves
• Central bankers are engaged in the most sweeping rethink of their role in decades, spurred by successful government collaboration
• Chinese authorities signaled they may soon unleash more support for the economy, an unexpected shift in tone that suggests the world’s fastest pandemic recovery may be weaker than it appears. Meanwhile, the country’s factory inflation peaked and started to ease in June as a stronger dollar and government measures helped to cool commodity prices
• The U.S. and Mexico outlined a plan to address the denial of workers’ rights at a General Motors Co. pick-up truck plant, the first such strategy under a mechanism in the year-old trade deal between the nations and Canada
• Four African finance ministers urged faster disbursement of loans the continent needs to avert an insolvency crisis
• Hong Kong’s emerging recovery from an historic recession is throwing into stark relief the territory’s deepening wealth imbalances
• The minimum wage is always hotly contested in South Korea -- but the issue is more fraught than usual this year
• India’s risk-averse lenders are emerging as one of the biggest hurdles to the speed of the nation’s recovery
• Chancellor Angela Merkel visits President Joe Biden in the White House and Japan and Canada decide interest rates in the week ahead

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