Biden Tax Plans, New York Homes, Warning on U.S. Wages: Eco Day

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

  • President Joe Biden wants to end the preferential U.S. tax treatment of investment income that has benefited the nation’s wealthy as he seeks to fund a sweeping new social-spending program. But he will need to overcome a major political hurdle in Congress to do so
  • With so many gauges of the U.S. economy pointing to an accelerating recovery, and even a post-pandemic boom, it seems like a strange time for the government to warn that wages are about to shrink
  • The farther you go from Manhattan, the higher home prices are climbing
    • Meanwhile, the Hamptons real estate market has been on a dazzling hot streak and shows no signs of slowing down
  • Pret a Manger, the coffee and sandwich shop whose expansion symbolized London’s thriving economy before the coronavirus, is shifting toward the suburbs after lockdowns left employers allowing more staff to work from home.
    • In a more optimistic sign for the U.K., economic activity accelerated at the fastest pace in seven years this month, providing more signs of a strong rebound as the government began allowing stores and restaurants to reopen
    • If households release just 10% of a 150 billion pound cash pile amassed during lockdown over the next 12 months, BOE rate hike could be in play next year, according to Bloomberg Economics
  • The euro area’s economic recovery also got fully underway in April with services returning to growth and manufacturing expanding at a record pace
  • Bank of Russia Governor Elvira Nabiullina accelerated the pace of monetary tightening, raising the key rate by 50 basis points in a move few expected

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