U.S. Inflation Watch, Tax Squeeze, No U.S. House Bubble: Eco Day

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Happy Thursday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • Investors are watching today’s latest U.S. consumer price index to gauge the inflation risk with economists expecting an annual advance of 4.7%
  • The world’s richest face a tax squeeze as G-7 leaders -- hoping to challenge the supremacy of tech titans -- move to plug holes in the world’s leaky tax system
  • Commerce ministers from China and the U.S. agreed to push forward trade and investment links in their first call since the start of the Biden administration
    • President Joe Biden’s blueprint for the U.S. semiconductor industry will need more money and global support to take back chip supremacy and preempt a rival effort from China
  • ECB officials will decide Thursday just how much monetary stimulus the euro zone needs as it emerges from coronavirus lockdowns over the summer. Meanwhile, Serbia kept borrowing costs steady for a sixth straight month
  • U.S. home prices are rising at an even faster pace than in the lead-up to the last housing crisis, but by some key measures there’s less risk of a blowout
    • Renters are piling into Manhattan, and they’re planning to stay for a while
    • The housing boom is fueling bets that the Federal Reserve will taper mortgage bonds first
  • Tofu is about to get pricey, and it’s going to test just how much Americans are willing to pay for protein
    • The world’s food-import bill is expected to climb to an all-time high this year, with the soaring cost of staples hitting poor nations particularly hard and threatening to fuel global inflation
  • The Fed’s top brass has cast a skeptical eye on cryptocurrencies, but the central bank may be a surprisingly early adopter of the first Bitcoin-linked junk bond
  • Finally, in focus on this week’s Stephanomics podcast is Japan’s difficult choice to move forwad with the Olympics during the pandemic

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