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Supply Shortages, Inflation Risks, Australia Yields: Eco Day

Supply Shortages, Inflation Risks, Australia Yields: 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:

  • Federal Reserve policy makers are expected to announce this week that they will start scaling back their massive asset-purchase program amid greater concern over inflation, economists surveyed by Bloomberg said
  • Last year the global economy came juddering to a halt. This year it got moving again, only to become stuck in one of history’s biggest traffic jams. New Bloomberg Economics gauges show the extent of the global supply shortages that are pushing prices higher and putting economic recoveries at risk
  • France’s president Emmanuel Macron backed away from his imminent threat to punish the U.K. for restricting the post-Brexit access of French fishing boats in British waters, saying he would give negotiations more time
  • The Reserve Bank of Australia bowed to market pressure Tuesday, abandoning a bond-yield target after an acceleration in inflation spurred traders to price in higher borrowing costs. The forecast for underlying inflation now suggests rate hikes could arrive a little sooner than previously expected -- in early, rather than mid-to-late, 2024, Bloomberg Economics says
  • Singapore’s top central banker said the monetary authority is watching for signs of accelerating inflation and is ready to act, underscoring how policy makers globally are refocusing attention on rising prices after their extraordinary efforts to weather the pandemic
  • Persistent supply-chain challenges continued to weigh on U.S. manufacturers in October, lengthening supplier delivery times and bloating a measure of inventories.
  • Indian Prime Minister Narendra Modi surprised delegates at the COP26 climate summit with a bold pledge: the world’s third-biggest emitter will reach net-zero by 2070. That pledge hinges on a boost in government spending, which may require higher taxes
  • China’s fiscal policy will provide the main support to economic growth next year while significant monetary easing is unlikely, according to a former adviser to China’s central bank
  • Japan Prime Minister Fumio Kishida’s stronger-than-expected election victory smooths the path for a stimulus package that signals whether he’s a big spender or a budget balancer

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