U.S. Jobs Report, G-7 Tax Talks, Infrastructure Woes: Eco Day

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

• Markets are bracing for U.S. nonfarm payrolls for May, with consensus estimates pointing to a gain of 674,000. Economists, blindsided by a major miss in April’s U.S. employment report, are ready for any number of surprises in May’s data
  • Here’s what Bloomberg Economics’ Yelena Shulyatyeva expects
• It’s also jobs report day in Canada, where Prime Minister Justin Trudeau’s aid plan has become a key lifeline for the economy

• Treasury Secretary Janet Yellen is in London for a meeting of finance ministers from the Group of Seven nations

  • The main issue on the agenda will be attempts to find common ground toward a global tax deal, with an agreement hoped to be reached at the Group of 20 meeting in July
  • U.K. Chancellor Rishi Sunak is pushing for the meeting to adopt his proposal to impose mandatory reporting of environmental risks on big companies
  • In the U.S., President Joe Biden pitched to Republicans the idea of a 15% minimum tax on corporations, along with strengthened IRS enforcement efforts.
• The biggest threat to Biden’s vision of energizing the U.S. economy with the largest infrastructure program in decades may not be its challenging path through Congress, but a dire shortage of everything from workers to cement mills
• Biden’s “intentionally targeted” revamp of Donald Trump’s order to ban investments in certain Chinese companies allows him to maintain a tough line on China in a way that still provides room for dialogue between the world’s biggest economies
• It sounds like a Mao-era relic of China’s planned economy: the Department of Price. But this rarely discussed corner of the Chinese bureaucracy is playing an increasingly important role in the inflation debate whipsawing financial markets
• The ECB will extend its phase of faster bond-buying through the summer to ensure any economic rebound after coronavirus lockdowns is a sustained recovery, according to a Bloomberg survey of economists

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