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Welcome to Wednesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:
- Brexit-related trade barriers have driven a 6% increase in U.K. food prices, adding to a squeeze on consumer spending power, according to a new report
- British households are increasingly relying on food banks for emergency assistance, indicating a cost-of-living crisis is accelerating and likely to drag more people into poverty
- Bloomberg Economics warns that if the Europe energy crisis escalates — either because Russia cuts off supply for more countries or because Europe moves ahead with sanctions — Germany and other major euro-area economies may face significant disruption, potentially tipping the block into recession
- The Fed is likely to need to engage in the most aggressive monetary tightening since the 1980s, Deutsche Bank says
- U.S. consumer confidence deteriorated slightly in April
- Sales of new U.S. homes fell in March to a four-month low, showing signs hot demand and tight supply are rebalancing
- Lael Brainard was confirmed as vice chair of the Federal Reserve Board of Governors Tuesday in a 52-43 Senate vote, but a combination of Covid-related absences and a political spat threatens to delay three other Fed nominees
- China will step up infrastructure construction to bolster the economy
- A lockdown in Beijing would hit more than growth, Bloomberg Economics says
- Satellite data shows the extent of China’s lockdowns
- New Zealand’s central bank said it will design a framework to impose debt-to-income mortgage lending restrictions
- Australia’s core inflation breached the top of the central bank’s 2-3% target for the first time since 2010, sending the currency higher and boosting the case for an interest rate hike just weeks out from an election
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