Unstable Italy, U.S. Jobs Data, Czech Inflation Bonds: Eco Day

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

Mario Draghi's possible shift to become Italy's president risks reminding investors how the country is never far away from political instability
Czechs piled into government inflation bonds, evidence of growing concern that consumer price rises will get out of control
U.S. nonfarm payroll data Friday are set to show a solid pickup in December hiring and a decline in the unemployment rate, according to Bloomberg Economics
Initial jobless claims in the U.S. rose last week, though they remained near historic lows as the labor market withstood the recent Covid-19 surge
The Fed could start to raise its target interest rate as soon as March and shrink the balance sheet as a next step, Federal Reserve Bank of St. Louis President James Bullard said
Federal Reserve Vice Chair Richard Clarida sold at least $1 million of shares in a U.S. stock fund in February 2020 before buying a similar amount of the same fund a few days later on the eve of a major central bank announcement, according to an amended financial disclosure
A record 48% of U.S. small-business owners said they raised compensation in December and nearly a third said they plan to do so in coming months
China's central bank is expected to frontload monetary-policy easing this year as fresh virus outbreaks and lockdowns add to economic headwinds
Argentina raised its benchmark interest rate for the first time in more than a year as it faces calls from the International Monetary Fund to tighten monetary policy