ECB-Fed Alignment, U.K. Consumers, Biden’s Schmoozing: 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.

  • European Central Bank policy makers have all the evidence they need to keep their ultra-loose monetary stimulus in place when they meet Thursday, thanks in part to their opposite numbers at the Federal Reserve
  • As President Joe Biden pushes ahead with plans to spend trillions of dollars on infrastructure and the U.S. social safety net, White House advisers are counting on his personal touch with Congress to win over skeptics in both parties
  • U.K. consumers opened their wallets in May as the economy continued to emerge from coronavirus restrictions. Meanwhile, the country’s hospitality industry warned it may lose 500,000 jobs when the government’s furlough program to support wages ends
  • European businesses are increasing investment in China and moving supply chains onshore after China’s quick recovery from the pandemic made it an even more important source of growth and profits
  • Japan’s economy shrank less than first reported last quarter, easing concern over the risk of a double-dip recession as the country struggles through another round of Covid restrictions
  • The EU is ready to consider tougher retaliatory measures if the U.K. government fails to implement its post-Brexit obligations
  • Russia will rely on economic stimuli to encourage a shift away from dollars and reduce its exposure to U.S. sanctions, but isn’t considering any restrictions on companies’ use of the greenback
  • Chinese lawmakers are making progress on legislation to retaliate for foreign sanctions amid the country’s growing rivalry with the U.S.
  • The number of low-income households in Hong Kong has almost doubled over the past two years
  • Global policy makers are crafting their international tax plan to make sure Inc. is included, even though the U.S. company’s profit margin is below the proposed 10% threshold
  • Some investors are cheering the Bank of Japan’s withdrawal from the stock market, even as they brace for more volatility

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