Hawkish Hungary, China Heals, Treasury Secretary Yellen: Eco Day

Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • The Italian Treasury is starting to factor in a bigger hit to the country’s battered public finances this year as another extended lockdown holds back the recovery, a senior government official said.
  • Hungary is poised to stay hawkish in its central bank decision on Tuesday, despite a rally in its currency
  • China’s economy picked up speed in January, according to early indicators, while the Covid-battered Hubei province set the highest GDP growth target of the country’s regions
  • U.S. President Joe Biden says he’s “open to negotiate” on the stimulus package he’s pitched; former Federal Reserve Chief Janet Yellen won confirmation with bipartisan backing Monday to be the Treasury Secretary
  • The Bank of Japan hinted that its March policy review could include considering ways to boost growth potential
  • South Korea’s economy shrank just 1% last year amid healthy exports and relatively effective virus control; the world is dangerously dependent on fellow electronics powerhouse Taiwan for its booming semiconductor industry
  • Recovery in the Philippines, meanwhile, hinges on whether children are able to get out of the house
  • South Africa is vulnerable but Brazil, India, Indonesia, Mexico and Russia are less exposed to Covid debt risk among emerging nations, Bloomberg Economics analysis shows
  • The Nigerian central bank is seen holding its policy rate, for now, as the country grapples with distortions that are stoking inflation amid languishing output

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