U.K. Jobs at Risk, Fed Holds Steady, Remote ECB: Eco Day

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

• The U.K.’s smaller businesses and startups are facing severe cash shortages, with millions of jobs at risk. The government is being urged to expand its social safety net to build on furlough-type payments to those who lose their jobs even after the pandemic
• With little surprise, the Federal Reserve upgraded its view of the economy and held its line on inflation while keeping rates near zero and asset purchases steady
• U.S. President Joe Biden’s economic plan, outlined further in an address to Congress on Wednesday night in Washington, sets up a return to big-government spending
• The European Central Bank will probably adopt a mix of home- and office-based working after the pandemic, President Christine Lagarde said, acknowledging that the crisis has shown how much can be done remotely
• The U.S. and EU are racing to curb a June escalation in their dispute over metals tariffs
• The pandemic has had a greater economic impact on women due to their over-representation in industries hardest hit by the crisis, according to an Oxfam International report
• Islands that can easily seal themselves off from the spread of Covid-19 are set to mop up the biggest gains from European tourism this summer, another example of how the pandemic has shaken up the global economy
• U.S. Commerce Secretary Gina Raimondo said the Biden administration needs to help American businesses export to China and do business there, even as it protects workers from unfair practices and competition
• As India’s Covid crisis worsens, Prime Minister Narendra Modi has had to shift his protectionist agenda and rely more on global assistance
• Brazil leads and Peru lags as the recovery in Latin America moderates, Bloomberg Economics analysis shows
• Turkey’s new central bank governor is expected to raise inflation forecasts after his appointment unleashed a slide in the lira, exposing his limited room to deliver interest-rate cuts sought by the president

©2021 Bloomberg L.P.