U.K.’s Woes, Chinese Inflation, Fed’s Asset Buying: Eco Day
(Bloomberg) -- Welcome to Monday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the week.
- At least 250,000 small companies in the U.K. are expected to close in 2021 unless the government provides more assistance, threatening a further blow to an economy heading for a double-dip recession. A German study says Britain is significantly less attractive as an international business location because of Brexit, but remains well positioned compared with other major economies
- Denmark will most likely have to extend parts of its lockdown, which initially had been set to end in one week, because the U.K. variant of the virus is spreading fast, Prime Minister Mette Frederiksen said
- Federal Reserve Vice Chair Richard Clarida said he doesn’t expect the central bank to begin tapering its asset purchases this year despite an expected strengthening of the economy as the pandemic fades
- China’s consumer prices rose in December while factory gate deflation eased, providing more evidence of the country’s economic recovery
- China continued its pushback against U.S. sanctions, issuing new rules to protect its firms from “unjustified” foreign laws. The fallout from sanctions on military-linked companies widened as banks and money managers raced to comply with a U.S. executive order that bans new investments from Monday
- The Reserve Bank of New Zealand said it’s investigating an illegal breach of a file-sharing service used to store some sensitive information
- Inflation in India may finally be slowing, opening the door for the central bank to resume monetary easing and helping it push back against calls to shake up its policy framework
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