U.S. Tariffs, Fed’s Inflation Debate, BOE Policy Hold: Eco Day
Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day.
- The European Union is working toward having the U.S. lift its national-security tariffs on metal imports by the end of the year, EU Ambassador to Washington Stavros Lambrinidis said
- Fed Chair Jerome Powell said inflation had picked up but should move back toward the 2% target once supply imbalances are resolved. Meantime, a number of his colleagues think the U.S. central bank’s policy outlook needs to be more attuned to inflation risks
- European Central Bank President Christine Lagarde said accelerating U.S. inflation that prompted the Federal Reserve to shift its view of price risks will have only a limited impact in the euro area
- The majority of the Bank of England’s nine member policymaking committee will vote to keep policy on hold this week, holding the line that the pick-up in inflation this year will eventually fade, writes Dan Hanson
- Five years on from the knife-edge Brexit referendum, the U.K. remains deeply divided over leaving the EU. Meantime, the U.K. formally started negotiations to join a trans-Pacific trading bloc
- Roughly 15 months after locking down to ward off Covid-19, several of the globe’s key financial centers are struggling to get employees back to their offices
- A raft of disappointing economic data from China last week, especially the sluggish recovery in consumption, has prompted economists to cut their estimates for China’s output in 2021
- China’s imports of American goods slowed again in May, putting targets agreed with the U.S. in a 2020 trade deal further out of reach
- Yields on longer-dated Treasuries rebounded in the U.S. session Monday after collapsing to multi-month lows during a broad risk-off move earlier in Asia trading, as American stocks rebounded and reflationary bets began to return
- Hungary is set to become the first European Union nation to tighten monetary policy this year, with the central bank widely expected to raise interest rate in an attempt to curb surging inflation
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