China’s Record Trade, Post-Pandemic Puzzle, RBA Taper: 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.

• China’s export growth unexpectedly surged in August as suppliers likely boosted orders ahead of the year-end shopping season, offsetting any port disruptions due to fresh outbreaks of the delta virus
• Global central bankers trying to gauge the threat posed by surging inflation have another puzzle to solve too: whether the pandemic has shifted their policy bearings
• Boris Johnson’s reluctance to turn to the European Union to ease a supply chain crisis that has seen shelves in supermarkets run empty has highlighted his government’s priority: Brexit first
• U.K. retail sales growth lost momentum in August, with both shops and consumers pointing to concerns over higher prices
• The Reserve Bank of Australia pushed ahead with a cautious winding back of its bond-buying program, underlining its confidence in the economy’s recovery prospects once a virus wave abates
• Spain is the latest European nation turning to a hot market for green debt as it seeks to fund projects that mitigate climate change
• European countries could face severe drought twice as frequently in the coming decades if they fall short in cutting emissions, according to new research that shows how shifting rain patterns will expose more people to climate risk
• Goldman Sachs Group Inc. economists revised down their forecast for growth in the U.S. economy this year, pointing to a “harder path” ahead for the American consumer than previously anticipated
• China’s regulatory efforts to increase control over its technology sector adds another “decoupling engine” to the global economy, the former head of the World Trade Organization said
• China’s leaders have been signaling that they intend to use new taxes to meet their “common prosperity” goals, but analysts following the developments say most such initiatives will require years to be fully formed

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