Expensive Restaurants, Low Births, Argentine Beef: Eco Day

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

  • Federal Reserve Chair Jerome Powell said the price increases seen in the economy recently are bigger than expected but reiterated that they will likely wane
  • U.S. restaurants, faced with higher food and labor costs, are raising menu prices at a much faster pace than historical rates, insistent on preserving profits after an arduous year
  • Starting in early 2020, a very unlikely anomaly started appearing in global trade data: China said it was selling more goods to the U.S. than the U.S. reported buying from China. That was a reversal of the normal pattern and a product of the two nations’ trade war -- but not an intended consequence. Instead, it was likely due to misreporting by both exporters in China and importers in the U.S.
  • Nine months after the declaration of a national emergency due to the emergence of the Covid-19 pandemic, U.S. births fell by 8% in a month
  • Bloomberg Economics estimates U.S. 2021 GDP growth peaked in the second quarter at a whopping 10%
  • Bank of Canada Governor Tiff Macklem is in the final stages of a mandate review that could see him request more authority from Prime Minister Justin Trudeau’s government to run the economy hot
  • Purchasing Managers Indexes showed the private sector in the euro area growing at the fastest pace in 15 years, with the composite measure rising to 59.2 in June
    • The reading for the U.K. was even stronger, coming in at 61.7 with survey data pointing to soaring input costs
    • The story in Japan was less rosy as pandemic measures continued to subdue activity
    • PMI figures for the U.S. economy are published this morning
  • Argentina is stepping back from its ban on beef exports, an unorthodox move implemented last month in an effort to rein in runaway inflation

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