U.S. Retail Sales, Powell Nomination, Housing Woes: Eco Day

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

• U.S. retail sales for June -- due to be published this morning -- probably slipped 0.3%, with the headline number weighed down by car and gasoline sales
  • A month-over-month drop in retail spending in June will prove an incomplete look at underlying momentum, according to Bloomberg Economics. A recovery in services spending is still gathering steam as goods spending -- and stimulus-fueled income -- fade down toward trend
• U.S. Treasury Secretary Janet Yellen said the question of whether to nominate Federal Reserve Chair Jerome Powell for a second term is a conversation for her and President Joe Biden, declining to give her opinion in a televised interview
  • Here’s what we learned from Powell’s two days of congressional hearings on the economic and policy outlook this week
• The White House will hold a meeting with representatives from across the homebuilding industry on Friday as Biden seeks to address a housing supply shortage that’s spurring a record increase in home prices

• The Biden administration is expected to issue an “advisory” today warning U.S. companies about the risks of doing business in Hong Kong. While the action won’t require specific action, it will underscore the threat to companies in the city as Beijing consolidates its grip on the former colony

  • The warning comes amid a wider push by the U.S. to reduce China’s growing influence in Southeast Asia
  • Biden and Chinese leader Xi Jinping meet virtually this morning at an informal APAC meeting focused on ending the Covid-19 pandemic.
• Inflation slowed in Argentina for the third straight month, cooling more than economists had forecast as the government aims to ease price increases before midterm elections
  • Government steps to regain control over Argentina’s chaotic -- here’s what you need to know
• Bond traders are wagering that Chile will successfully navigate the dilemma facing the world’s central banks -- how to slow inflation without derailing the economic recovery
• The world’s largest central banks are joining the fight against climate change, figuring that doing nothing is riskier than getting involved

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