ECB’s Yield Watch, Hungary Rates, Powell Pressure: Eco Day


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

  • ECB President Christine Lagarde said her institution is “closely monitoring” the market for government bonds, in a sign that she might act to prevent rising yields
  • U.K. Prime Minister Boris Johnson declared the end of the pandemic is “in sight” for England, as he set out his aim to ease lockdown rules in a series of stages over the next four months. Meantime, Finance Minister Rishi Sunak is poised to spend billions of pounds more in state support for the economy over the next four months
  • Hungary’s central bank will most likely keep its monetary-policy unchanged on Tuesday, with increasing bets on the return of global inflation underpinning its pledge for caution
  • The cost of shipping goods from France to Britain has surged in the past year both because of Brexit and the coronavirus
  • Fed Chair Jerome Powell can expect pressure to support Democratic lawmakers’ stimulus plan when they host him on Capitol Hill this week for the first time since Democrats regained control of Congress
  • Interest rates may stay at historically low levels for decades, according to Bank of England policy maker Gertjan Vlieghe
  • U.S. President Joe Biden’s administration dashed hopes for a softer approach to the World Trade Organization by pursuing a pair of his predecessor’s strategies that critics say risk undermining the international trading system
  • A “disinflationary” mindset has taken hold among U.S. businesses and consumers that will be hard to dislodge despite stronger economic growth this year, Federal Reserve Bank of Richmond President Thomas Barkin said
  • U.S. Treasury Secretary Janet Yellen signaled the Biden administration supports research into the viability of a digital dollar, a shift from the lack of enthusiasm shown for the concept under her predecessor
  • An influx of cash-rich Hong Kong buyers is barely making a dent in London’s ailing luxury property market

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