Europe Turning Around, BOE Taper, Powell Sees Progress: Eco Day
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Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day.
- Europe’s economy is finally turning the corner from its worst crisis in the post-war period after a devastating double-dip recession
- Italy’s plan to kick-start its economy using grants and loans from the European Union’s recovery fund won’t be successful without significant buy-in from private investors, Infrastructure and Mobility Minister Enrico Giovannini warned in an interview
- The U.K.’s economic rebound from the pandemic is fueling speculation that Bank of England policy makers this week will start discussing how and when they can ease their foot off the stimulus pedal. Prime Minister Boris Johnson said coronavirus lockdown rules are set to be scrapped in seven weeks’ time
- A week that could set in motion the eventual collapse of the 314-year union between England and Scotland is concentrating City trading desks on market disasters ahead
- The Covid-19 crisis is accelerating a technology boom that has the potential to boost productivity across much of the world, spurring growth even in mature economies such as those of Europe and the U.S.
- Federal Reserve Chair Jerome Powell said that while the U.S. economic recovery is “making real progress,” the gains have been uneven. Bloomberg Economics reflects on the importance of jobs in any Fed taper, while a separate analysis shows minorities in some cities are getting left behind by the overall boom in hiring
- The U.S. Treasury more than quadrupled its borrowing estimate for the quarter through June, and expects to need some $1.3 trillion over the fiscal second-half to help pay for fresh pandemic-relief spending
- The semiconductor shortage has slashed vehicle production so much that rental-car companies can’t get the new cars they need, so they have resorted to buying used vehicles at auction
- A major investment deal reached in December between the European Union and China — after seven years of painful negotiations — may end up being the high-water mark for ties that are quickly deteriorating again
- Cryptocurrencies like Bitcoin and Ether will co-exist “for a while” with more-restrictive digital coins such as the one issued by China’s central bank, according to Changpeng Zhao, CEO of Binance
- India’s overwhelming surge of coronavirus infections has revealed complacency after last year’s first wave, as well as a “lack of foresight, a lack of leadership,” according to Raghuram Rajan, former governor of the country’s central bank.
- It’s not just India. Fierce new Covid-19 waves are enveloping other developing countries
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