The Day at a Glance | June 8 2021

The Top

*Growth in Europe was revised upwards for the 1Q21 (-0.3% vs -0.6% prev.).

*Kamala Harris visits Mexico to discuss migration.

*US Senate will vote on a bill today; it considers 200 billion dollars to make the country more competitive against China.

*Japan`s GDP contracted less than estimated: (-) 3.9% annualized in the 1Q21.

*Republicans in the US will oppose the minimum corporate tax proposed by the G-7.

*Scarcity of workers and risks of inflation reduce confidence and optimism among small businesses in the US: NFIB.

*Economic indicators: Inflationary data is expected to be made public in China (1.6% e. May).

Economic environment

The European economy contracted less than initially reported during the 1Q21. Growth Domestic Product figures in the Eurozone were revised upwards, from (-) 0.6% to (-) 0.3% during the 1Q21. The data suggests that the economy finds itself in a more favorable position amidst an economic recovery that is expected to be strong starting in the 2Q21. Unexpected growth in Italy helped the block`s aggregate GDP while employment contracted less than originally expected (-1.3% vs -1.8% prev.), which also helped improve the region`s economic outlook. Europe continues to advance its vaccine programs at a fast pace in order to halt quarantine measures, which have kept economic activity depressed for 7 months. Vaccine programs, along with high levels of savings among households are two elements that are expected to cause consumption and demand for goods and services to resume starting in the 2Q21. Recent confidence surveys in Germany, the block`s largest economy, continue to show improvement in June as the ZEW expectations survey`s indicator set at its highest level in almost two years. Despite having a more positive outlook in 2021, the European Central Bank is still committed to continue stimulating the economy until it knows that the pandemic triggered crisis has passed.

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