ECB Sparring, Bumpy U.K. Rebound, China’s Ghost Cities: Eco Day
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Welcome to Thursday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:
- The euro-area rebound and a dramatic inflation surge has reignited the sparring among ECB policy makers about when to shift away from its crisis mode. The bank is telling lenders to prepare for stress tests that will show how vulnerable they are to climate change
- About 2.1 million U.K. jobs are still affected by the coronavirus pandemic, pointing to a bumpy economic recovery
- Conjured out of nothing and lived in by seemingly no one, China’s so-called ghost cities became the subject of Western media fascination a decade ago. Now that’s beginning to change
- Across the world, a dearth of workers is shaking up food supply chains
- For years the premium paid for dollars over the euro, Japanese yen and others in cross-currency markets has been negative, indicating rampant demand for greenbacks. Now cross-currency basis swaps are on the verge of turning positive, a major shift for money markets
- The Bank for International Settlements will test the use of central bank digital currencies with Australia, Malaysia, Singapore and South Africa in an experiment that could lead to a more efficient global payments platform
- The pandemic trend of white-collar employees working remotely or fleeing for the suburbs has disproportionately hurt low-skilled workers who stayed behind in deserted neighborhoods
- China ramped up financial support for small businesses and pledged better use of local government bonds as the economy showed further signs of a slowdown
- The devastating earthquake that hit Haiti last month will make one of the world’s longest recessions much deeper
- Scores of listed Chinese companies have name-checked President Xi Jinping’s “common prosperity” drive in earnings reports, seeking to align themselves with the campaign to reduce wealth inequality. Meanwhile, an influential liberal Chinese economist has emerged as a rare voice of caution on the new drive
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