U.S. Trade Talks, German Lockdown, Hungary Rate Call: Eco Day

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

  • President Joe Biden’s trade representative held her first meetings with counterparts from the European Union and the U.K. on Monday, with all sides expressing desire to resolve a dispute over subsidies to manufacturers Boeing Co. and Airbus SE
  • With the sacking of his third central bank governor in less than two years, Turkey’s President Recep Tayyip Erdogan’s has demonstrated yet again his determination to fight the conventions of modern economics
  • Cash is alive and thriving in the euro zone despite the rise of debit cards and contactless payment, and the pandemic has even accelerated that trend, according to the European Central Bank
  • Chancellor Angela Merkel and regional leaders agreed to put Germany into hard lockdown over Easter to try to reverse a “third wave” of Covid-19 infections fueled by faster-spreading mutations
  • Much of Russia’s Far East is so vast and remote that it’s mostly been left to the bears, wolves and tigers that live there. Now the Kremlin wants to use it to convince the world that the country is doing its part to fight climate change
  • Hungary’s central bank is running out of time to avoid raising interest rates to tame the forint and temper inflation
  • U.S. Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell will enter a heatedly partisan arena on Tuesday to kick off two days of congressional hearings assessing the economic policy response to the Covid-19 crisis
  • The economy seems to be gathering steam, though it is still far from fully recovering, according to Powell’s prepared testimony to the House Financial Services Committee. This was echoed by Richmond Fed President Thomas Barkin
  • The Biden administration is considering as much as $3 trillion worth of measures to include in the long-term economic program that will follow the $1.9 trillion pandemic-relief bill signed earlier this month, according to three people familiar with the deliberations. Biden is betting on a multi-trillion dollar economic plan centered around infrastructure spending to bolster the American economy
  • China faces the threat of foreign outflows from the second half of the year as rising borrowing costs in the U.S. drives investors out of emerging markets, according to a former adviser to China’s central bank
  • New Zealand’s government announced a suite of new measures to tackle the rampant property market by increasing the supply of houses and removing tax incentives for speculators

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