Supply Squeeze, Canada Spending, Inflation Pressures: Eco Day

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

• Orders at factories are piling up as companies around the world struggle to meet demand amid a damaging mixture of the coronavirus and widespread bottlenecks in supply chains
• Canadian Prime Minister Justin Trudeau is set to release an election campaign platform promising tens of billions in spending on new initiatives that would be fully financed by a tax revenue windfall from an expanding economy
• Inflation forecasts are rising further in Brazil as electricity bills become more expensive due to a severe drought that has depleted hydroelectric reservoirs
• The European Central Bank shouldn’t over-interpret the spike in euro-area inflation as it prepares for a policy decision next week, according to Governing Council member Yannis Stournaras, who spoke after hawks pushed for a slowdown in stimulus
• U.K. house prices rebounded strongly in August, suggesting underlying demand and a shortage of homes for sale are underpinning the market as a tax break on purchases is withdrawn
• China has mostly contained the delta variant outbreak that started in late July -- allowing for further relaxation of restrictions. But the economy is hardly responding, with consumption failing to recover and a production proxy showing only marginal improvement, according to Bloomberg Economics
• The Diapers.com guy has been pondering what he sees as the biggest challenge facing the U.S. — the country’s massive wealth gap. Now he wants to build a utopian megalopolis

©2021 Bloomberg L.P.