U.S. Wages Surprise, Canada Rates, Bernanke Model: Eco Day

Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

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

  • An unexpected jump in U.S. wages has given financial markets a new reason to worry that higher inflation may be here to stay
    • CPI red hot or red herring? Bloomberg Economics inflation dashboard monitors gains, drivers and expectations
    • Bloomberg Economics has also dusted off an academic model from former Federal Reserve Chair Ben Bernanke and used it to forecast the outlook for inflation
  • The U.S. senate passed an industrial policy bill to invest almost $250 billion in boosting U.S. manufacturing to compete with China, a move blasted by Beijing
  • President Joe Biden’s hopes for a bipartisan deal on the biggest infrastructure package in decades took a blow with the end of direct talks with the lead GOP negotiator, increasing the likelihood that Democrats pursue a sweeping, multi-trillion dollar package on their own
    • Biden released a multi-pronged strategy to secure supply chains in products ranging from medicines to microchips
  • Investors will be looking for fresh hints from the Bank of Canada today on its next move to reduce emergency levels of monetary stimulus
  • EU leaders and Biden will commit to ending outstanding trade battles when they meet next week
  • U.K. Chancellor Rishi Sunak is pressing for the City of London to be exempt from a plan by global leaders to make multinationals pay more tax to the countries in which they operate
  • China’s factory-gate inflation rose to its highest level since 2008, raising the odds that exporters will begin passing on higher prices and boost inflationary pressures in the global economy
  • Chile’s central bank gave the strongest signal yet that it’s nearing the first interest rate increase since 2019
  • The World Bank says many nations will keep struggling with the pandemic and its aftermath even as a few major economies spur the strongest post-recession global growth in 80 years

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.