U.S. Savings Haul, Four-Day Work Week, Canada GDP: Eco Day

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

  • A surge of imports into the U.S. economy shows little sign of slowing down, clogging American ports and highlighting ways the pandemic is still causing imbalances in the global recovery
  • U.S. Senate Majority Leader Chuck Schumer faces a major test with the chamber set to take up Joe Biden’s $1.9 trillion Covid relief package this week
    • While another round of stimulus is set to push growth to its pre-pandemic trend by midyear, a stealth buildup of $1.7 trillion in extra savings means even more dry tinder for spending, according to Bloomberg Economics
  • Prime Minister Justin Trudeau’s claims there isn’t a trade-off between Canada’s strict lockdowns and economic growth will be tested with the release of new output data
    • Bloomberg Economics expects fourth-quarter real GDP posting a 7.1% gain (after 40.5% in 3Q), slightly weaker than the consensus estimate of 7.5%
  • Traders in Chile and Brazil stepped up their rate hike bets amid a surge in U.S. yields, demanding central banks to be bolder and faster in fighting rising inflation expectations
  • The Federal Reserve is intensifying its scrutiny of banks’ efforts to shed their reliance on the London interbank offered rate, and has begun compiling more detailed evidence on their progress
  • Biden’s nominee for trade chief, Katherine Tai, said she’d work to ensure that tariffs imposed by the Trump administration on imported Chinese goods are appropriate, signaling no immediate changes
    • The WTO’s new leader pledged to shake up the Geneva-based trade body, but Ngozi Okonjo-Iweala’s first speech as director-general stopped short of offering details into how she’d change the way the WTO has operated for years
  • President Xi Jinping is worried the U.S. will block China’s rise, and this week will unveil plans for greater self-sufficiency
  • A century after the invention of the weekend, more companies are adding another day

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