Battered London, EU’s Open Taps, Yellen Clarifies: Eco Day

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

  • London is emerging from lockdown bruised by Brexit and a pandemic that hit the U.K. capital harder than other regions, raising questions about its ability to power the country’s economic recovery
  • Poland ratified the European Union’s pandemic stimulus package, overcoming a rift in the government to help open the taps for hundreds of billions of euros to flow to all member states
  • U.S. Treasury Secretary Janet Yellen sought to clarify comments that ruffled markets, saying she wasn’t forecasting or recommending interest-rate increases that could be needed to rein in inflation spurred by administration spending
  • Signs of inflation are picking up, with a growing number of consumer-facing companies warning that supply shortages and logistical logjams could force them to raise prices
  • Soaring inflation is unlikely to make Poland abandon its commitment to near-zero interest rates Wednesday. The prospect of an interest-rate increase as soon as September is likely to be the key focus of Norway’s central-bank decision
  • The Group of Seven nations is considering a U.S. proposal to counter what the White House sees as China’s economic coercion. Meanwhile, the EU’s competition commissioner warned the bloc needs “intrusive” rules to prevent foreign state-funded firms -- such as China’s -- from undercutting European companies
  • The world’s 20 most powerful economies agreed to back plans for vaccine passports to revive the travel and tourism industry
  • From New York to Sydney, Covid-19 -- along with ultra-low rates and government spending -- is upending real estate markets
  • A senior White House aide deflected the question of whether President Joe Biden will offer Federal Reserve Chair Jerome Powell a second four-year term
  • The years-long U.S. baby drought worsened last year, with births dropping 4% from 2019 to the lowest level since 1979

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