ECB’s Pace, G-7 Tax Optimism, RBNZ’s Signal: 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:

  • Europe’s labor market may recover more slowly from the pandemic than its economy, according to a study by Accenture
  • The European Central Bank is in no rush to adjust its pandemic bond-buying pace, and any talk of reducing support already in the third quarter is “purely speculative,” according to Governing Council member Francois Villeroy de Galhau
  • European governments are increasingly confident a deal will soon be struck with the U.S. on a minimum global corporate tax to make multinationals pay more to the countries they operate in
  • New Zealand’s central bank projected that its official cash rate may start to rise in the second half of next year. The kiwi dollar and bond yields surged
  • With only months left on their terms, Fed vice chairs Randal Quarles and Richard Clarida were reminded that their time in office may be drawing short. President Joe Biden is under explicit pressure to replace Quarles. Meantime, Clarida said officials may begin discussing the appropriate timing of scaling back their bond-buying program
  • Central bankers around the world are mulling the future of their massive bond-buying programs in a post-pandemic world, knowing that with big balance sheets come big expectations
  • China’s strong economic momentum eased slightly in May, as surging raw material prices squeezed profits, businesses turned more cautious and property and car sales underperformed
  • From tropical island resorts to Outback whiskey makers to mountain ski fields to inner city coffee shops, Australian businesses are struggling to recruit the staff they need to service cashed up clients
  • They’re called the Sampo Generation: South Koreans in their 20s and 30s who’ve given up (po) three (sam) of life’s conventional rites of passage—dating, marrying, and having children

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