Brexit Borders, Krone Strength, RBA’s Message: 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:

  • Freight hauliers are rejecting more cargoes due to cross the U.K. border because of post-Brexit customs friction
  • Chancellor of the Exchequer Rishi Sunak’s determination to bring Britain’s public finances under control marks a very different tone from the global consensus
  • In the country with the longest history of negative interest rates, the currency is now so strong that there’s speculation Danish policy makers will need to step in
  • The European Central Bank “can and must react against” any unwarranted rise in bond yields that threaten to undermine the euro-area economy, Bank of France Governor Francois Villeroy de Galhau said
  • Australia’s central bank kept its key policy settings unchanged, while reinforcing a commitment to its three-year target following a campaign of shock-and-awe in bond markets
  • Federal Reserve Bank of Richmond President Thomas Barkin played down recent Treasury market volatility, in remarks that reinforce the message that the U.S. central bank is not yet troubled by the increase in yields
  • New Zealand’s central bank said it’s watching financial markets closely for signs of dysfunction and warned it has the ability to increase its weekly bond purchases if needed
  • U.S. manufacturing expanded in February at the fastest pace in three years and a gauge of materials costs accelerated the most since 2008 as supply shortages challenge the industry
  • President Joe Biden’s nominee for trade chief said she’d work to ensure that tariffs imposed by the Trump administration on imported Chinese goods are appropriate, signaling no immediate changes

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