Brexit Forum, China Closes In on U.S., IMF Upgrade: Eco Day

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

  • The newly-agreed forum between Britain and the European Union will seek “transparency and appropriate dialog” about cross-border financial market access
  • The ECB won’t find much sign of inflation in the pay deal struck by 3.8 million metals and engineering workers in Germany this week
  • China’s Covid-19 rebound is edging it closer to overtaking the U.S. economy
  • President Joe Biden will unveil his vision for a mass ramp-up in U.S. infrastructure spending Wednesday in Pittsburgh, a city viewed as a prime example of an old manufacturing hub revitalized
  • Nowcasts of GDP growth across major economies show output for a significant chunk of the world economy is poised to move above the pre-crisis peak, but with a widening divide as China and the U.S accelerate out of the slump, and European countries sink lower, Bloomberg Economics writes
  • The IMF next week will upgrade its forecast for global economic growth while warning of high uncertainty and new virus strains
  • Output at Japanese factories fell in February as carmakers and manufacturers of electronics cut production amid the virus emergency and chip shortages, and as an earthquake hit supply chains
  • Developing countries’ ability to renegotiate their overseas borrowing could be complicated by contracts with Chinese state-lenders which include confidentiality clauses and exemptions from restructuring, according to a report
  • If there’s one key takeaway after a year of pandemic, it’s that policy makers will carry on injecting vast amounts of cash to fight the crisis, so much so that inflation is emerging as the major risk
  • Turkish President Recep Tayyip Erdogan appointed a Morgan Stanley executive to the central bank’s interest-rate setting committee

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