Draghi’s Prestige, Powell’s Jobs Push, Inflation or Not: Eco Day
(Bloomberg) -- Welcome to Thursday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:
- After being asked to run Italy, Mario Draghi took less than a week to turn the political system on its head and boost the country’s standing in financial markets. In many ways, that’s more than outgoing Prime Minister Giuseppe Conte managed in better than two years on the job
- The European Union rebuffed the U.K.’s call to reset the two sides’ relationship, saying Britain needs to honor the promises it made on Northern Ireland as part of the Brexit deal
- European Central Bank Executive Board member Fabio Panetta said a digital euro might be the innovation that sees negative interest rates passed directly to consumers
- Debt relief provided by private creditors for the world’s poorest nations under a Group of 20 restructuring plan will hinge on each borrower’s situation and might not necessarily reduce any money owed, according to the chair of the Paris Club
- U.K. house prices rose last month, despite weaker activity in the property market amid a third national coronavirus lockdown
- Britain’s three pandemic lockdowns have cost retailers about 22 billion pounds ($31 billion) in lost sales, according to a trade group. Meanwhile, leaders of the U.K.’s most influential business groups, who frequently help shape government policy, urged Rishi Sunak to keep spending to help British companies survive
- Bank of England policy maker Silvana Tenreyro said that the coronavirus pandemic may prove to be detrimental to many women’s careers and pay
- Alex Brazier, the BOE’s executive director for financial stability strategy, is stepping down from his roles to take a career break
- Fed Chair Jerome Powell said the U.S. job market remains a long way from a full recovery and called on both lawmakers and the private sector to support workers.
- Joe Biden began his presidency much as his predecessor did, promising to restore hope to a blue-collar middle class battered by decades of relentless job losses from automation and foreign competition. But the realities of trying to stoke U.S. manufacturing employment in the wake of an economic crisis are quickly endangering his plans
- The House Ways and Means Committee on Wednesday advanced a key portion of Biden’s Covid-19 relief package -- a $400 weekly supplement to unemployment benefits through the end of August
- Economist Lisa Cook has the backing of several key White House officials and allies outside the administration as a possible choice for Biden in filling a vacancy on the Federal Reserve Board of Governors, according to people familiar with the matter
- It’s a question that divides the financial world: Is inflation returning? One camp contends that governments’ no-expense-spared response to Covid-19 has put developed economies on course for rising prices on a scale unseen in decades
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