U.K. Tax Hike, Fed’s Taper, Southeast Asia Reopens: Eco Day

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Welcome to Monday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the week.

  • U.K. Prime Minister Boris Johnson risks strangling growth with higher taxes on business to fix public finances in the wake of the coronavirus pandemic, the country’s biggest business lobby said
  • The U.K. will abandon plans to call for proof of vaccination to enter certain venues, and may soon drop mandatory testing for returning travelers
  • The Federal Reserve is unlikely announce a start-date for scaling back asset purchases at its meeting this month, but is still on track to begin in 2021
  • Even as they struggle with one of the world’s worst Covid-19 outbreaks, Southeast Asian nations are slowly realizing they can no longer afford the economy-crippling restrictions needed to squash it
  • The three declared candidates vying to become Japan’s next leader offer a choice between a renewed drive to stoke inflation, a bid to rebuild the middle class, or an acceleration of digital reform that puts growth before price targets
  • China’s activity data are likely to show the recovery faced even stronger headwinds in August, with consumption retreating further before rebounding this month, Bloomberg Economics says
  • Shanghai has halted some container port operations and will cancel most flights Monday and Tuesday as Typhoon Chanthu approaches the city, which is a major shipping hub. Meanwhile the number of container ships waiting to enter the largest U.S. gateway for transpacific trade swelled to another pandemic record
  • Global companies from noodle makers to semiconductor giants are spending big on new plants and machinery
  • The turbulence of the pandemic is likely just the curtain-raiser for an age of upheaval in the global economy, a financial historian says
  • The U.S. is weighing a new investigation into Chinese subsidies and their economic damage as a way to pressure Beijing on trade
  • House Democrats are set to propose raising the corporate tax rate to 26.5% from the current 21%
  • The Swiss National Bank’s negative interest rates remain essential to prevent a rise in the franc that would thwart economic growth, Vice President Fritz Zurbruegg said
  • The Greek government raised its growth estimate for 2021, with the economy set to repeat a performance not seen in two decades

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