(Bloomberg) -- Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

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

  • U.K. Chancellor of the Exchequer Rishi Sunak appears to have embraced surging inflation, as he delivered a Johnson-style budget that laid out plans to add 75 billion pounds ($103 billion) of stimulus across the next six years
  • The U.K. government hit back at France over its proposed retaliatory measures in a dispute over fishing access, as post-Brexit tensions between the two countries rose further
  • Portuguese Prime Minister Antonio Costa may face early elections after parliament rejected his minority Socialist government’s 2022 budget
  • The White House is stepping up pressure on congressional Democrats to finalize a framework on its economic agenda before President Joe Biden leaves Thursday for summits in Europe
  • The Bank of Canada ended its bond-buying stimulus program and accelerated the potential timing of future interest rate increases
    • Bloomberg Economics says the shift is difficult to square with downward adjustments made to the GDP forecasts
  • The Bank of Japan stood pat on its stimulus while signaling more delays in the economy’s post-pandemic recovery, just days before new Prime Minister Fumio Kishida faces his first national election
  • Fewer than half of the 87 countries that received a combined $118 billion in emergency IMF loans pledged to account for their spending
  • Bloomberg Economics says U.S. GDP may hint at stagflation, but it’s not a repeat
    • The U.S. is suffering longer delivery delays than other economies because of stronger demand from American consumers, a signal that high inflation is likely to persist
  • Brazil’s central bank is poised to deliver its biggest interest rate hike in nearly two decades on plans for a spending surge

©2021 Bloomberg L.P.