Middle Class Crisis, Brazil Budget, Global Tax Deal: Eco Day

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

• Millions tumble out of global middle class in historic setback
• President Joe Biden will deliver his second major speech on his $2.25 trillion infrastructure plan today as he tries to raise support among Republican voters
  • White House aides have said they want significant progress made in Congress on the package by Memorial Day. While the recent procedural win means the administration will not have to rely on GOP support for much of that progress, Biden will have to be careful not to alienate any senators from his own party
• The global economy is set to boom in 2021. Some emerging markets could be caught out of sync
• The U.S. risks losing its status as the world’s largest economy to China by the end of the decade if it doesn’t increase legal immigration, according to a study released by a tech industry group that favors admitting more foreign workers
• While fiscal stimulus is delivering a powerful economic windfall to lower and middle U.S. income households, rising asset values -- from home prices to stock portfolios -- look set to give one of the largest boosts to consumer demand via wealth effects in a quarter century, according to Bloomberg Economics
• Biden said he hasn’t spoken with Federal Reserve Chair Jerome Powell since taking office more than two months ago, citing respect for the central bank’s independence and marking a sharp turn from his predecessor
• An impasse between Brazil’s economic team and congress over this year’s budget will likely end up with President Jair Bolsonaro accepting only part of his economy chief’s austerity pleas
• France signaled a sharp acceleration in international talks with the U.S. to overhaul global corporate tax rules and resolve the thorny issue of how to levy the profits of tech companies like Facebook Inc. and Alphabet Inc.’s Google
  • In a Bloomberg Television interview, French Finance Minister Bruno Le Maire also said he’s “deeply concerned” by the slow rollout of the European Union’s joint recovery fund
• India takes a step down the QE road with a $14 billion bond-buying plan

©2021 Bloomberg L.P.