Inequality Mission, Suez Canal Reopened, Chip Challenge: Eco Day

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

  • More than a half century after Lyndon Johnson’s war on poverty, President Joe Biden is planning to take on the nation’s enduring challenge of inequality with a mass expansion of government spending and a revamp of the tax code
    • Biden will unveil the framework for a major infrastructure-and-jobs program on Wednesday in Pittsburgh, and later in the week will offer the first glimpse of his 2022 budget
  • A nearly week-long saga to dislodge a giant container ship stuck in the Suez Canal ended, with the vessel freed and traffic resuming. Authorities expected operations to return to normal within days, but the event has revealed an Achilles’ heel for global trade
  • Global efforts to develop national self-sufficiency in chip production are “economically unrealistic” and U.S.-China trade tensions have contributed to the chip shortage currently snarling entire industries, according to Taiwan Semiconductor Manufacturing Co. Chairman Mark Liu

    • Renesas Electronics Corp. said production at a semiconductor factory hit by a fire is on track to resume by mid-April, welcome news from one of the top providers of automotive chips
  • The European Central Bank must be cautious when it shifts away from its emergency stimulus even if the economy rebounds from the pandemic as predicted, policy maker Vitas Vasiliauskas says
  • Japan’s retail sales beat economists’ estimates and ended a two-month losing streak even as businesses continued to operate under reduced hours amid a state of virus emergency in the country’s biggest cities
  • Economic indicators that help to shape the People’s Bank of China’s stance remained tilted toward tapering, based on the latest readings for the first two months of the year, Bloomberg Economics says

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