Shutdown Avoided, Mexico & Colombia Rates, Price Woes: Eco Day

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

• The Senate will vote today on a bill extending government funding until Dec. 3 to avoid a shutdown when the fiscal year ends at midnight tonight
  • The deal strips out Democrat demands to suspend the debt ceiling, meaning it should easily pass both chambers and go to President Joe Biden for his signature with only hours to spare
  • Avoiding the shutdown, however, was probably the easiest thing on the president’s to-do list as the risk of a U.S. default in less than three weeks remains very real, while his economic agenda is caught in a battle between the progressive and moderate wings of the Democratic Party
• After two weeks of disappointingly high readings, this morning’s U.S. jobless claims data is expected to show the number of people signing up for unemployment benefits falling to 330,000
• Mexico and Colombia are forecast to raise interest rates on Thursday as economic growth rebounds and inflation soars across Latin America
• Despite assurances from the world’s leading central bankers yesterday that the current spike in prices would ultimately prove temporary, markets are getting more prepared for a longer period of inflation
  • A Citigroup Inc. survey of clients found most were braced for “sticky” inflation, while there are signs that European bond investors are growing increasingly concerned about a surge in yields
  • There is little to suggest that the rapid rise in energy prices is going to ease any time soon, with inflation rates in the euro area at decade-highs

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