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

  • The global economy’s supply crunch is propelling inflation at such a fast pace that central bankers may be forced to respond, even though fixing that imbalance is beyond their power
  • Economists at some of the world’s biggest banks are following investors in predicting the Bank of England will raise interest rates this year after Governor Andrew Bailey reinforced signals of an imminent move to curb inflation
  • European Central Bank officials seeking “flexibility” for their future stimulus plans can’t quite agree on whether that means room for maneuver -- or room for potential expansion
  • Prime Minister Boris Johnson hinted at future tax cuts for U.K. business even as his finance minister prepares to make historic rises over the next two years
  • Hungary’s central bank will probably resist pressure Tuesday to intensify its fight against soaring inflation, with economists expecting an increase of only 15 basis points in the base rate
  • Democratic U.S. Senator Joe Manchin said there’s little chance Congress can complete work on President Joe Biden’s economic agenda by the end-of-the-month deadline set by his party’s leaders
  • Chinese President Xi Jinping took a big gamble shaking up key industries ahead of a political gathering that could decide whether he rules the country indefinitely. Now he’s starting to hit the brakes
  • China’s property and construction industries contracted in the third quarter for the first time since the start of the pandemic, weighed by a slump in real estate
  • Australia’s central bank acknowledged that higher interest rates would remove some of the heat from the nation’s property market, though the cost would be fewer jobs and weaker wage growth. Meanwhile, Goldman Sachs says Australia’s housing market will likely peak late next year and then enter a period of stagnation
  • Here’s what Bitcoin at $60,000 says about inflation: Nothing good, according to Bloomberg Economics

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