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Welcome to Wednesday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:
- American companies would face steeper penalties for shifting profits abroad in a plan from Senate Democrats, which so far is the most public piece of the Democrats’ attempt to overhaul the tax system
- The draft legislation comes after the House adopted a $3.5 trillion budget resolution, with President Joe Biden praising Speaker Nancy Pelosi’s “masterful” leadership in uniting fractious Democrats
- The labor constraints jeopardize essential U.S. services such as trash pick-up, and exacerbate shortages in demanding jobs like 911 dispatchers that predated the Covid-19 crisis. The solution: sign-on bonuses
- Analysis suggests it’s a combination of Federal Reserve asset purchases and continued uncertainty about the outlook that’s depressing U.S. yields, according to Bloomberg Economics, which opens up the possibility of a marked increase as the Fed begins to taper and Covid-19 concerns ease
- President Jair Bolsonaro may be growing uneasy about Brazil’s inflation in the run up to general elections next year, but he doesn’t plan to interfere with the central bank, sources say
- China has re-opened a terminal at the world’s third-busiest port, after a Covid-19 case forced the closure which exacerbated pre-existing congestion on global shipping routes
- Shortages in goods including semiconductors and paper are putting Germany’s economic recovery under threat, as a key measure of business confidence slipped more than economists had forecast
- The EU recovery plan should help support stronger productivity gains particularly in Southern Europe, but relief will likely only be temporary, according to Bloomberg Economics
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