The global economy is re-opening with demand rising faster than supply, fuelling a temporary trade shock. What does this mean for economies and how should policy-makers respond? Investors pull money from Turkey, inflation wanes in Brazil, the opposition competes for relevance in Venezuela, Malaysia’s central bank warns about inflation, Chile elects members for the constituent assembly, a slew of new polls in Peru, Argentina’s ‘Quadruple’ ambitions, China slows at the margin, and mixed news on the coronavirus front. The global backdrop delivered a spike in US inflation. US inflation now exceeds EM inflation, making Chinese bonds look particularly attractive versus US Treasuries, in our view.