Climate Change, EU’s New Weapon, Decoupling Costs: Eco Day

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

  • European Central Bank officials are finally building a consensus about how they might start delivering on President Christine Lagarde’s ambition to combat climate change
  • EU governments banking on hundreds of billions of euros in recovery funds to revive their economies can start putting forward their plans from Thursday, when the bloc’s newest economic weapon becomes operational
  • About 2.6 million people in the U.K. expect to lose their jobs in the next three months, according to a survey that suggests long-lasting damage to the economy from the coronavirus. Meanwhile, the opposition Labour Party set out its pre-budget pitch, saying that “failed Conservative ideology” left Britain’s economy exposed to the pandemic
  • Prime Minister Mario Draghi urged Italians to pull together in a historic effort to rebuild their country as he set out a firmly pro-European agenda
  • Strong demand for electronics continues to underpin global trade even as a container shortage, limited semiconductor stock, a run-up in fuel prices and Covid-related supply-chain disruptions threaten to hamper the recovery
  • The Bank of England has more scope to increase its bond-buying program to stimulate the economy, a key policy maker said, a sign officials may be reluctant to push borrowing costs below zero
  • Federal Reserve officials expected it would be “some time” before conditions to scale back bond purchases were met, minutes of their late-January meeting showed. Meanwhile, staffers gave a more worrisome assessment of the risks to financial stability than the one presented publicly by Chairman Jerome Powell
  • The progressive policy focus early in U.S. President Joe Biden’s administration has come as something of a surprise after his centrist campaign. Meanwhile, his top economic adviser is seeking Taiwan’s help in resolving a global semiconductor shortage
  • American companies would lose hundreds of billions of dollars in a full decoupling from China, according to a U.S. Chamber of Commerce report
  • The U.S. economy started 2021 with a bang as retail sales and factory output accelerated, setting the stage for what could be the best year of economic growth in nearly four decades

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