Post-Covid Rethink, G-7 Tax Talks, Canada’s Top Earners: Eco Day

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

  • Policymakers learned the lessons of 2008 and deployed a wider set of tools to help repair the damage from Covid
  • Americans are done with 5-days a week in the office. Click here to read what that means for the economy
    • Bloomberg Economics’ high-frequency indicators point to robust U.S. economic growth, but accelerating demand has put pressure on prices and the labor market. Higher prices should be offset by stimulus checks and savings accumulated during the pandemic
  • A Group of Seven meeting this week is unlikely to settle on a rate for a global minimum corporate tax, Japan’s Finance Minister Taro Aso said
  • Canada’s highest-earning families were the biggest beneficiaries of Prime Minister Justin Trudeau’s pandemic aid, potentially opening his government to criticism that its programs were wasteful

  • President Joe Biden on Tuesday plans to announce steps to increase the number of federal contracts awarded to small, disadvantaged businesses, one of several measures designed to address a racial-wealth gap
    • Biden wants to spend his way to a greener and more sustainable future for America. For now though, he’ll probably be financing it the old-fashioned way -- with taxes and traditional bonds
  • Inflation in the euro area climbed to the highest level in more than two years after economies across the region started to lift coronavirus restrictions and rebounding demand aggravated supply bottlenecks

  • China will allow all couples to have a third child in order to slow the nation’s declining birthrate. It won’t be enough to head off an inevitable demographic drag on the economy, says Eric Zhu

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