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

  • Euro-zone monetary policy is subsidizing the finance industry to such a degree that national central banks are having to curtail the cash distributions they normally hand to governments
  • European businesses operating in China are facing rising costs and uncertainty as they grapple with economic decoupling between the U.S. and its Asian rival
  • Fed officials are beginning to split over when they may need to start pulling back on their massive monetary stimulus
  • Shocks to supply chains are engulfing a wider swath of the global economy, threatening to stifle Asia’s trade-led recovery
  • The Bank of England will improve communication about how quantitative easing stimulates the economy, after an internal report found its method is poorly understood
  • London’s home-letting agents are growing more pessimistic about the outlook for rental prices after the coronavirus pandemic fueled a flight from the capital
  • Serbia will probably leave interest rates at a record low Thursday after surprise cuts last year helped its economy through the pandemic with one of Europe’s smallest contractions
  • U.S. economic activity increased modestly at the end of 2020, the Federal Reserve said. Meanwhile, the surge of U.S. business formations in the latter half of 2020 has been one of the pandemic’s surprises
  • Chinese exports continued to expand at a strong pace in December, pushing the trade surplus to a record high in the month and helping underpin the recovery. Meanwhile, the U.S. will bar entry of cotton products and tomatoes from the Xinjiang region, where it says China is oppressing Muslim-minority Uighurs
  • Turkey’s state-owned banks have slashed the gap between their foreign-currency assets and offshore liabilities as the government follows through on pledges to reverse unorthodox policies that stressed lenders

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