Brexit Truce, Britons’ Summer Travel, Czech Rates: 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:

  • British and European officials are increasingly optimistic they will avert a post-Brexit trade war, believing the two sides will strike a truce in the dispute over checks on goods moving into Northern Ireland
  • Boris Johnson’s government is preparing to allow Britons who have been fully vaccinated against coronavirus to travel to more than 150 countries without the need to quarantine on their return to England later this summer. The government will also go easy on firms with unpaid taxes during the pandemic
  • Fed Chair Jerome Powell said the price increases seen in the economy recently are bigger than expected but reiterated that they will likely wane. Meantime, New York Fed chief John Williams said a discussion about raising interest rates is still quite a ways off
  • The Czech Republic will probably follow regional neighbor Hungary by starting a campaign to lift borrowing costs to eliminate the risk of inflation spiraling out of control
  • Catherine Mann, a former chief economist at Citigroup and the OECD, will become a policy maker at the Bank of England from September
  • The IMF will discuss a proposal to create a $650 billion of reserves
  • China’s government is facing more calls to reduce its concerns about debt, with several economists arguing that authorities should follow the U.S. playbook and borrow more to spur the economy
  • The worst of China’s inflation scare is probably over, writes Bloomberg Economics’ David Qu
  • China’s efforts to join a regional trade deal that originally aimed to exclude Beijing “should set off alarm bells” in Washington, U.S. lawmakers say

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