British Budget, Wall Street Bulls, Global Food Prices: Eco Day

(Bloomberg) -- Welcome to Monday, Europe. Here's the latest news and analysis from Bloomberg Economics to help you start the week.

• Chancellor of the Exchequer Rishi Sunak promised to be “honest” with the British public when the budget is released this week, signaling potential tax hikes to fill the gaping hole in U.K. finances wrought by the pandemic
• U.S. Senate Democrats are shelving an effort to raise minimum wages for workers as part of the $1.9 trillion virus relief package that passed the House of Representatives on Saturday, according to two people familiar with the matter
• As the world races to vaccinate its way out of the coronavirus pandemic, another challenge has emerged for some more vulnerable governments and economies: rising food prices
• In the showdown between traders and central bankers over rising bond yields, the Bank of England is aligned more with the relaxed views of the U.S. Federal Reserve than peers in Asia and Europe that are trying to rein in markets
• The U.S. has dropped a key demand in negotiations over digital taxation of technology
• Manufacturing engines across Asia ground forward last month, with most continuing to expand during the volatile Lunar New Year holiday period. Meanwhile, South Korea's exports rose for a fourth straight month as a global recovery fueled demand for chips and cars
• Australia's central bank doubled down on bond purchases, spurring the biggest drop in yields in a year as policy makers around the world seek to check runaway bets on reflation. The country's housing market is booming again amid the biggest monthly price gain in 17 years
• Wall Street's most bullish economic forecasts hang on a simple prediction: Everybody will flood back soon to their local gyms, bars and yoga studios as if the pandemic were in the past
• China is set to reduce local government bond sales and rein in its budget deficit this year, scaling back pandemic stimulus measures that helped the economy recover but fueled debt
• Sweden is usually considered a pioneer in sex equality, but its corporations are starting to fall behind on a key metric

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