BOE Shrugs Off Yields, Czech Resilience, U.S. Tax Hike: Eco Day

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

  • The Bank of England this week is set to drift further away from the European Central Bank and other monetary institutions actively trying to rein in the surge in bond yields
  • The Czech economy has been “surprisingly resilient” amid one of the world’s worst virus outbreaks, but markets might be premature in expecting an interest-rate hike this summer, a central banker said in an interview
  • The Bank of France sees the French economy rebounding faster than previously expected this year as virus-related restrictions ease
  • The White House is planning the first major federal tax hike since 1993 to help pay for a long-term economic program following the $1.9 trillion stimulus package. Meanwhile, a top U.S. economic adviser told Bloomberg Television that they’re eyeing a “long list” of infrastructure needs
  • The Biden team is defending the Trump administration’s China tariffs in court against lawsuits brought by thousands of companies. A bipartisan group of senators presnted a bill to revamp a 1962 trade law that Trump used to justify tariffs on billions of dollars in imports on national-security grounds
  • The Bank of Japan is set to unveil small changes after its big policy review
  • Looking at countries’ ability to save lives and livelihoods amid Covid, middle-income countries like China had some of the best outcomes while rich ones like the U.S. and U.K. had some of the worst, Bloomberg Economics analysis shows
  • American rum distillers and French winemakers celebrated this month when the U.S. and European Union suspended tariffs on billions of dollars of each other’s exports. But for U.S. whiskey producers, the detente brought no relief
  • U.S. stimulus and rising yields have sparked a readjustment across markets with an as-yet unclear impact on inflation and growth, said Banco de Mexico Governor Alejandro Diaz de Leon ahead of a key rate decision later this month

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