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The Federal Reserve announced that it would launch its massive $ 120 billion monthly bond purchase program earlier this month.
The decision is the culmination of a month-long debate among Fed officials about the level of support the world’s largest economy needs as price pressures begin to spread beyond the sectors most sensitive to the post-pandemic reopening.
The move corresponded with abrupt measures by a number of central banks around the world to tighten monetary policies, including the Reserve Bank of Australia and the Bank of Canada.
Markets expect the Bank of England, which is in session today, to hike rates for the first time since 2018. Investors are betting that the European Central Bank could follow suit next year, despite recent opposition from its President Christine Lagarde.
Thank you for reading FirstFT Europe / Africa. Here’s the rest of today’s news – Gary
Five more stories on the news
1. The Finance Minister’s arguments resonate beyond Germany All eyes are on who will be Germany’s next financial tsar. The holder of the office wields power far beyond national borders and has shaped the EU’s response to everything from the Greek debt crisis to the pandemic.
2. The poultry industry needs fewer visas for foreign workers The UK poultry industry expects to avail only half of the 5,500 emergency visas made available before Christmas after farmers cut production and increased local recruitment to meet the need for migrant workers.
3. Sequoia on the hunt for “permanent capital” The traditional venture capital company from Silicon Valley seeks to replicate the success of groups like Blackstone and Pershing Square by creating a “permanent structure” to house investor capital, which then flows into its sub-funds.
4. US credit market is shifting away from the battered Libor Firms borrowing in the US credit market are moving away from Libor for good just months before the scandal-struck benchmark that underpins trillions of dollars in financial instruments becomes unavailable for new business.
5. “The Promise” wins the Booker Prize for Fiction Damon Galgut won the Booker Prize 2021 for his novel The promise, a vivid account of the decline of the family in South Africa during the transition from apartheid.
Thanks to those who voted in our poll yesterday. Eighty-seven percent of readers said Facebook was right to shut down its facial recognition system.
A Mark Carney-led coalition of companies have up to $ 130 trillion in private capital to hit net zero. Lex says the promise is too big to be believable.
BlackRock CEO Larry Fink warned that pressures on publicly traded companies to pursue net-zero goals – while leaving private goals out of the limelight – creates opportunities for “the biggest capital market arbitrage of my life.”
Interview: Ugandan climate activist Vanessa Nakate on Africa’s role in curbing emissions – and how she struggled after she was removed from the picture.
Beijing responded to US criticism of Xi Jinping’s absence at the COP26 climate summit and said the Chinese president would not be allowed to participate via video link.
The day ahead
OPEC meeting Saudi Arabia, Russia and other oil producers will meet to decide whether to increase the supply of oil to the world market. OPEC and its allies have gradually scaled back the cuts, but some consumer countries believe this is not happening quickly enough.
Lord Frost, the British Brexit Minister, will meet his French counterpart Clément Beaune in Paris, in the middle of the angling dispute between the countries.
Merits Interim results from Sainsbury’s, BT, Tate & Lyle and Toyota are expected today, while Airbnb, Pinterest, Credit Suisse, Moderna and Bertelsmann will report on the third quarter.
What else we read
How does Europe get its gas? Rising prices and supply doubts reveal Europe’s dependence on the fuel that supports much of its economy. This visual explanation sheds light on where the continent’s gas comes from and the reasons for the energy crisis.
“It is not a giant step to introduce nature into the economy” In an interview with environmental correspondent Leslie Hook, Cambridge professor Partha Dasgupta says that “violent” damage to ecosystems is not taken into account in macroeconomic forecasts.
How we can share our divided world The short answer is: with difficulty. The longer answer is: by being ambitiously pragmatic, writes Martin Wolf. We have to accept that we share our planet and interact too deeply with one another to avoid collaboration, as much as we don’t like each other.
The struggle for control of the Metaverse: Microsoft vs. Meta After spending much of the past two years in group video meetings, are office workers around the world ready to take a big step further into the digital world? You will decide which tech giant will dominate the more immersive virtual world.
Sam Leith describes the trials of a middle-aged man in search of socks. Comfortable, no-nonsense, and lasting couples have become something of a Holy Grail, he writes.
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