EU Bond-Buying, Biden’s Big Budget, U.K. Firms Upbeat: Eco Day

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Happy Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to take you through to the weekend:

• Economists and investors increasingly expect the European Central Bank to extend the elevated pace of its emergency bond-buying at its next meeting, despite a likely economic rebound
• President Joe Biden is set to unveil a budget that would increase federal spending to $6 trillion in the coming fiscal year
• U.K. firms are more upbeat about the economy than at any time since 2016, buoyed by a further easing of coronavirus restrictions in May. Meanwhile, Health Secretary Matt Hancock said the plan to end England’s pandemic restrictions on June 21 now is in doubt
• U.S. Treasury Secretary Janet Yellen said above-normal inflation is likely to persist through the end of the year before fading, a longer period than officials had previously indicated. See more on her travels to London for a meeting of her G-7 counterparts in this look at the week ahead
• Evanston, Illinois has begun a 10-year, $10 million reparations program to pay down its debt to Black residents, starting with housing
• Hungary will probably trail money-market bets on its monetary-tightening trajectory as policy makers may opt for a more gradual pace of interest-rate increases, a survey showed
• Gold stored at the Bank of England has been selling for unusually high premiums recently, signaling that central banks may be back in the market buying
• China is trying to whack down soaring commodity prices before rising costs hurt the economy. An appreciating currency should contain some of the effect of that, but the central bank is signaling the yuan is appreciating too fast
• Secretary of Commerce Gina Raimondo said administration spending plans are focused on boosting U.S. competitiveness with China
• The Fed’s prestigious annual Jackson Hole policy symposium will be held in person this year, albeit in modified form

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