raised in October by 2.2 percent.

Crucially, executives also agreed to return to the bargaining table in April if a continued upward climb in prices hurts employees.

At Sephora, the luxury cosmetics chain owned by LVMH Moët Hennessy Louis Vuitton, some unions are seeking an approximately 10 percent pay increase of €180 a month to make up for what they say is stagnant or low pay for employees in France, many of whom earn minimum wage or a couple hundred euros a month more.

€44.2 billion in the first nine months of 2021, up 11 percent from 2019, raised wages at Sephora by 0.5 percent this year and granted occasional work bonuses, said Jenny Urbina, a representative of the Confédération Générale du Travail, the union negotiating with the company.

Sephora has offered a €30 monthly increase for minimum wage workers, and was not replacing many people who quit, straining the remaining employees, she said.

“When we work for a wealthy group like LVMH no one should be earning so little,” said Ms. Urbina, who said she was hired at the minimum wage 18 years ago and now earns €1,819 a month before taxes. “Employees can’t live off of one-time bonuses,” she added. “We want a salary increase to make up for low pay.”

Sephora said in a statement that workers demanding higher wages were in a minority, and that “the question of the purchasing power of our employees has always been at the heart” of the company’s concerns.

At the European Central Bank, employees’ own worries about purchasing power have lingered despite the bank’s forecast that inflation will fade away.

A spokeswoman for the central bank said the 1.3 percent wage increase planned for 2022 is a calculation based on salaries paid at national central banks, and would not change.

But with inflation in Germany at 6 percent, the Frankfurt-based bank’s workers will take a big hit, Mr. Bowles said.

“It’s not in the mentality of E.C.B. staff to go on strike,” he said. “But even if you have a good salary, you don’t want to see it cut by 4 percent.”

Léontine Gallois contributed reporting from Paris.

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Wall Street tumbles, with tech leading the way. Bitcoin’s drop takes crypto stocks with it.

Tesla was one of the worst-performing stocks in the market on Wednesday, tumbling more than 4 percent. The company had once positioned itself as a prominent supporter of cryptocurrencies, and in March, it announced that it would accept Bitcoin in exchange for cars, helping to set off a surge in the asset.

Last week, Elon Musk, the company’s chief executive, reversed that decision, citing concerns about the energy consumption needed to produce cryptocurrencies. That process, known as mining, involves a using computers to create new Bitcoin by having them solve complex computational problems.

The hard drive maker Seagate Technology — which has a stake in cryptocurrency company Ripple, the creator of the XRP currency — tumbled more than 2 percent. Shares of Seagate and Western Digital, another maker of hard drives, had been on a tear in recent days, as analysts spotlighted surging demand for its computer products, in part, from cryptocurrency miners. Western Digital was down nearly 3 percent.

Bitcoin wasn’t the only element moving the markets. Crude oil tumbled roughly 4 percent, on lingering concerns that the still-spreading coronavirus in India, as well as Thailand, Vietnam and Taiwan, could prompt new restrictions that could curtail economic activity.

The Stoxx Europe 600 index was 1.5 percent lower, while the FTSE 100 in Britain was down 1.3 percent. Stock markets in Asia ended the day mainly lower, with the Nikkei in Japan down by 1.3 percent.

Volatility in the stock markets lately has been driven by sentiment about inflation. Investors are nervous that a jump in prices —  coming as global economies reopen and as the government continues to pump stimulus funds to spur growth — could push the Federal Reserve and other central banks to raise interest rates or take other measures to cool growth. That would be bad news for riskier investments like stocks.

The Fed and other central banks have said they see the recent increases as transitory caused partly by supply chain issues as economies revive from lockdowns, and that they have no plans to remove emergency support for the economy.

Federal Reserve policymakers will release the minutes from their April meeting on Wednesday.

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Europe’s economy is expected to shrink while the U.S.’s grows.

European authorities will release data on Friday that is widely expected to show another economic downturn over the first three months of the year as the still-raging pandemic has prompted governments to extend lockdowns.

Coming a day after the United States disclosed that its economy expanded 1.6 percent over the same period — a robust 6.4 percent annualized rate — the expected European contraction presents a contrast of fortunes on opposite sides of the Atlantic.

Propelled by dramatic public expenditures to stimulate growth, as well as swift increases in vaccination rates, the United States — the world’s largest economy — expanded rapidly during the first months of 2021. At the same time, the 19 nations that share the euro currency were likely caught in the second part of a so-called double-dip recession, reflecting far less aggressive stimulus spending and a botched effort to secure vaccines.

But economic growth figures represent a snapshot of the past, and recent weeks have produced encouraging signs that Europe is on the mend. Even as Covid-19 spreads alarmingly in major economies like Germany and France, factories have revived production, while growing numbers of people are on the move in cities.

European Union’s recent deal to secure doses from Pfizer.

In depriving households of the opportunity to spend, the pandemic has yielded savings — money that may surge into businesses as fear of the virus fades.

Most economists and the European Central Bank expect the eurozone to expand at a blistering pace over the rest of 2021, yielding growth of more than 4 percent for the full year.

International Monetary Fund. That compares to 10 percent in Germany.

But Europe also began the crisis with far more comprehensive social safety net programs. While the United States directed cash to those set back by the pandemic, Europe limited a surge in unemployment.

“Europe has more insurance schemes,” said Kjersti Haugland, chief economist at DNB Markets, an investment bank in Oslo. “You don’t fall as hard, but you don’t rebound that sharply either.”

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How Mario Draghi Has Made Italy a Power Player in Europe

ROME — The European Union was stumbling through a Covid-19 vaccine rollout marred by shortages and logistical bungling in late March when Mario Draghi took matters into his own hands. The new Italian prime minister seized a shipment of vaccines destined for Australia — and along with them, an opportunity to show that a new, aggressive and potent force had arrived in the European bloc.

The move shook up a Brussels leadership that had seemed to be asleep at the switch. Within weeks, in part from his pressing and engineering behind the scenes, the European Union had authorized even broader and harsher measures to curb exports of Covid-19 vaccines badly needed in Europe. The Australia experiment, as officials in Brussels and Italy call it, was a turning point, both for Europe and Italy.

It also demonstrated that Mr. Draghi, renowned as the former European Central Bank president who helped save the euro, was prepared to lead Europe from behind, where Italy has found itself for years, lagging behind its European partners in economic dynamism and much-needed reforms.

In his short time in office — he took power in February after a political crisis — Mr. Draghi has quickly leveraged his European relationships, his skill in navigating E.U. institutions and his nearly messianic reputation to make Italy a player on the continent in a way it has not been in decades.

denied her a chair, rather than a sofa, during a visit to Turkey last week, saying he was “very sorry for the humiliation.”

In his debut in a European meeting as Italy’s prime minister in February, Mr. Draghi, 73, made it clear that he was not there to cheerlead. He told an economic summit including heavy hitters like his European Central Bank successor, Christine Lagarde, to “curb your enthusiasm” when it came to talk about a closer fiscal union.

That sort of union is Mr. Draghi’s long-term ambition. But before he can get anywhere near that, or tackle deep economic problems at home, those around him say Mr. Draghi is keenly aware that his priority needs to be solving Europe’s response to the pandemic.

Italian officials say his distance from the contract negotiations, which were completed before he took office, gave him a freedom to act. He suggested that AstraZeneca had misled the bloc about its supply of vaccine, selling Europe the same doses two or three times, and he immediately zeroed in on an export ban.

“He understood straightaway that the issue was vaccinations and the problem was supplies,” said Lia Quartapelle, a member of Parliament in charge of foreign affairs for Italy’s Democratic Party.

On Feb. 25, he joined a European Council videoconference with Ms. von der Leyen and other European Union leaders. The heads of state warmly welcomed him. “We owe you so much,” Bulgaria’s prime minister told him.

Then Ms. von der Leyen gave an optimistic slide presentation about Europe’s vaccine rollout. But the new member of the club bluntly told Ms. von der Leyen that he found her vaccine forecast “hardly reassuring” and that he didn’t know whether the numbers promised by AstraZeneca could be trusted, according to an official present at the meeting.

He implored Brussels to get tougher and go faster.

Ms. Merkel joined him in scrutinizing Ms. von der Leyen’s numbers, which put the Commission president, a former German defense minister, on the back foot. Mr. Macron, who had championed Ms. von der Leyen’s nomination but quickly formed a strategic alliance with Mr. Draghi, piled on. He urged Brussels, which had negotiated the vaccine contracts on behalf of its members, to “put pressure on corporations not complying.”

At the time, Ms. von der Leyen was coming under withering criticism in Germany for her perceived weakness on the vaccine issue, even as her own commissioners argued that responding too aggressively with a vaccine export ban could hurt the bloc down the road.

Mr. Draghi, with his direct talk during the February meeting, tightened the screws. So did Mr. Macron, who has emerged as his partner — the two are dubbed “Dracon” by the Germans — pushing for a more muscular Europe.

Behind the scenes, Mr. Draghi complemented his more public hard line with a courting campaign. The Italian, who is known to privately call European leaders and pharmaceutical chief executives on their cellphones, reached out to Ms. von der Leyen.

Of all the players in Europe, he knew her the least well, according to European Commission and Italian officials, and he wanted to remedy that and make sure she did not feel isolated.

Then, in early March, as shortages of AstraZeneca’s Covid vaccine continued to disrupt Europe’s rollout and increase public frustration and political pressure, Mr. Draghi found the perfect gift for Ms. von der Leyen: 250,000 doses of seized AstraZeneca vaccine earmarked for Australia.

“He told me that in the days before he was on the phone a lot with von der Leyen,” said Ms. Quartapelle, who spoke with Mr. Draghi the day after the shipment freeze. “He worked a lot with von der Leyen to convince her.”

The move was appreciated in Brussels, according to officials in the Commission, because it took the onus off Ms. von der Leyen and gave her political cover while simultaneously allowing her to seem tough for signing off on it.

The episode has become a clear example of how Mr. Draghi builds relationships with the potential to yield big payoffs not only for himself and Italy, but all of Europe.

On March 25, when the Commission became suspicious over 29 million AstraZeneca doses in a warehouse outside Rome, Ms. von der Leyen called Mr. Draghi for help, officials with knowledge of the calls said. He obliged, and the police were quickly dispatched.

In the meantime, Mr. Draghi and Mr. Macron, joined by Spain and others, continued to support a harder line from the Commission on vaccine exports. The Netherlands was against it, and Germany, with a vibrant pharmaceutical market, was queasy.

When the European leaders met again in a video conference on March 25, Ms. von der Leyen seemed more confident in the political and pragmatic advantages of halting exports of Covid vaccines made in the European Union. She again presented slides, this time authorizing a broader six-week curb on exports from the bloc, and Mr. Draghi stepped back into a supportive role.

“Let me thank you for all the work that has been done,” he said.

After the meeting, Mr. Draghi, however modestly, gave Italy — and by extension himself — credit for the steps allowing export bans. “This is more or less the discussion that took place,” he told reporters, “because this was the issue originally raised by us.”

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A K-Shaped Recovery, This Time on a Global Scale

WASHINGTON — The global economy is rebounding from the coronavirus pandemic faster than previously expected, largely thanks to the strength of the United States. But the International Monetary Fund warned on Tuesday that an uneven rollout of vaccines posed a threat to the recovery, as the fortunes of rich and poor countries diverge.

The global dynamic echoes the “K-shaped” recoveries that are playing out worldwide. While many wealthy nations are poised for a major economic expansion this year, other nations’ struggles could reverse decades of progress in fighting poverty. Top international economic officials warned this week that this divergence, which is being amplified by sluggish deployment of vaccines in developing countries, is a threat to stability and long-term growth.

“Economic fortunes within countries and across countries are diverging dangerously,” Kristalina Georgieva, managing director of the I.M.F., said at a panel discussion on Tuesday during the annual spring meetings of the fund and the World Bank.

This week, Treasury Secretary Janet L. Yellen emphasized that point, saying in a speech that the inability of low- and middle-income countries to invest in robust inoculation programs could result in “a deeper and longer-lasting crisis, with mounting problems of indebtedness, more entrenched poverty and growing inequality.”

upgrading its global growth forecast for the year thanks to vaccinations of hundreds of millions of people, efforts that are expected to help fuel a sharp economic rebound. It now expects the global economy to expand by 6 percent this year, up from its previous projection of 5.5 percent, after a contraction of 3.3 percent in 2020.

The wealthiest countries are leading the way out of the crisis, particularly the United States, whose economy is now projected to expand by 6.4 percent in 2021. The euro area is expected to expand by 4.4 percent and Japan is forecast to expand by 3.3 percent, according to the I.M.F.

Among emerging market and developing economies, China and India are expected to drive growth. China’s economy is projected to expand by 8.4 percent, offering its own significant boost to overall global growth, and India’s is expected to expand by 12.5 percent.

But within advanced economies, low-skilled workers have been hit the hardest and those who lost jobs could find it difficult to replace them. And low-income countries are facing bigger losses in economic output than advanced economies, reversing gains in poverty reduction and risking long-lasting pandemic-era scars.

Emerging market economies in many cases have fewer resources for fiscal stimulus, vaccine investments and labor force retraining — factors that put them at risk of falling behind and getting stuck as the world starts its rebound.

Researchers at the I.M.F. pointed out in a recent blog post that it was important that rates on U.S. debt are rising because of a strengthening economic outlook, one that will benefit many economies by stoking demand for their exports. Still, “countries that export less to the United States yet rely more on external borrowing could feel financial market stress.”

Most U.S. officials have focused on how stronger domestic growth could actually help the rest of the world as American consumers buy foreign goods and services. “This year the U.S. looks like it’s going to be a locomotive for the global economy,” Richard H. Clarida, the vice chair of the Fed, said during a recent speech.

Ms. Yellen made a similar argument on Tuesday during a panel discussion at the I.M.F., at which she urged countries not to let up on fiscal support.

“Stronger growth in the U.S. is going to spill over positively to the entire global outlook and we are going to be careful to learn the lessons of the financial crisis, which is ‘don’t withdraw support too quickly,’” she said.

There are risks that spillovers could work the other way — slower vaccination progress abroad could come to weigh on American and global improvement. While roughly 500 doses of the vaccine have been administered per 1,000 people in the United States, based on New York Times vaccination data, that number is about 1 per 1,000 in Mali and Afghanistan.

Economist Intelligence Unit.

“There’s a race right now between these variants of concern and vaccines,” she said during a webcast event Tuesday. She urged “global cooperation and attention” to how disparities in vaccine distribution affect inequality and economic recoveries.

The I.M.F. agrees. Vitor Gaspar, the fund’s director of fiscal affairs, said that advanced economies would continue to be at risk even if the virus were raging in developing countries that are not major economic powers, noting that the virus cannot be eradicated anywhere until it is eradicated everywhere. For that reason, he said, investing in vaccinations is critical.

“Global vaccination is probably the global public investment with the highest return ever considered,” Mr. Gaspar said in an interview. “Vaccination policy is economic policy.”

While global policy bodies are warning about diverging growth and public health outcomes, some Wall Street economists have taken a more optimistic tone.

“We think market participants underestimate the likely pace of improvement in both the public health situation and economic activity in the remainder of 2021,” Jan Hatzius at Goldman Sachs wrote in an April 5 research note.

Vaccinations are high or progressing in Canada, Australia, Britain and the euro area. In emerging markets, Mr. Hatzius wrote, Goldman economists expect 60 to 70 percent of the population to have “at least some immunity” by the end of the year when counting prior coronavirus infection and vaccine proliferation.

“The laggards are China and other Asian countries, although this is mainly because Asia has been so successful in virus control,” he wrote.

How fast global recoveries proceed could be critical to the policy outlook, both in government support spending and in central bank monetary help.

From the Fed to the European Central Bank and Bank of Japan, monetary authorities have employed a mix of rock-bottom rates, huge bond purchases and other emergency settings to try to cushion the pandemic’s fallout.

Organizing bodies have echoed Ms. Yellen’s comment: They argue that it’s important to see the recovery through, rather than pulling back on economic help early.

Global policymakers “generally view the risks to financial stability associated with early withdrawal of support measures as currently greater than those associated with a late withdrawal,” Randal K. Quarles, the Federal Reserve’s vice chair for supervision and head of the global Financial Stability Board, said in a letter released Tuesday.

The I.M.F. said on Tuesday that it was keeping a close eye on interest rates in the United States, which could pose financial risks if the Fed raises them unexpectedly. It also urged countries to maintain targeted fiscal support — and to be ready to provide more if future waves of the virus emerge.

“For all countries, we’re not out of the woods, and the pandemic is not over,” said Gita Gopinath, the I.M.F.’s chief economist.

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How the Stimulus Could Power a Rebound in Other Countries

Washington’s robust spending in response to the coronavirus crisis is helping to pull the United States out of its sharpest economic slump in decades, funneling trillions of dollars to Americans’ checking accounts and to businesses.

Now, the rest of the world is expected to benefit, too.

Global forecasters are predicting that the United States and its record-setting stimulus spending could help to haul a weakened Europe and struggling developing countries out of their own economic morass, especially when paired with a rapid vaccine rollout that has poised the U.S. economy for a faster recovery.

As Americans buy more, they should spur trade and investment and invigorate demand for German cars, Australian wine, Mexican auto parts and French fashions.

The anticipated economic rebound in the United States is expected to join China’s recovery, adding impetus to world output. China’s economy is forecast to expand rapidly this year, with the International Monetary Fund predicting 8.1 percent growth. That is good news for countries like Germany, which depends on Chinese demand for cars and machinery.

just begun to push infections higher in the United States — and a large policy response, including more than $5 trillion in debt-fueled pandemic relief spending passed into law over the past 12 months. Those trends, paired with the accelerating spread of effective vaccinations, seem likely to leave the American economy in a stronger position.

“When the U.S. economy is strong, that strength tends to support global activity as well,” Jerome H. Powell, the chair of the Federal Reserve, said at a recent news conference.

A year ago, it was not at all certain that the United States would gain the strength to help lift the global economy.

International Monetary Fund forecast in April 2020 that the U.S. economy might expand by 4.7 percent this year, roughly in line with forecasts for Europe’s growth, following an expected slump of 5.9 percent in 2020. But the actual contraction in the United States was smaller, and in January, the I.M.F. upgraded the outlook for U.S. growth to 5.1 percent this year, while the euro area’s expected growth was marked down to 4.2 percent.

I.M.F. has signaled that the estimates for the country’s growth will be marked up further when it releases fresh forecasts on April 6.

The recent relief package continues a trend: America has been willing to spend to combat the pandemic’s economic fallout from the start.

America’s initial pandemic response spending, amounting to a little less than $3 trillion, was 50 percent larger, as a share of G.D.P., than what the United Kingdom rolled out, and roughly three times as much as in France, Italy or Spain, based on an analysis by Christina D. Romer at the University of California, Berkeley.

Among a set of advanced economies, only New Zealand has borrowed and spent as big a share of its G.D.P. as the United States has, the analysis found.

In Europe, where workers in many countries were shielded from job losses and plunging income by government furlough programs, the slow pace of the European Union’s vaccination campaign will probably hurt the economy, said Ludovic Subran, the chief economist of German insurance giant Allianz.

On Wednesday, France announced its third national lockdown as infected patients fill its hospitals.

Mr. Subran also questioned whether the European Union can distribute stimulus financing fast enough. The money from a 750 billion euro, or $880 billion, relief program agreed to by European governments last July has been slow to reach the businesses and people who need it because of political squabbling, creaky public administration and a court challenge in Germany.

administered only about 1 vaccine dose per 1,000 people, if that, based on New York Times data. In the United States, the rate is more than 400 doses per 1,000 people.

Still, a booming American economy poses some hazard to other nations — and especially emerging markets — as economic fates diverge.

Market-based interest rates in the United States are already climbing, as investors, sensing faster growth and quicker inflation around the corner, decide to sell bonds. That could make financing more expensive around the globe: If investors can earn higher rates on U.S. bonds, they are less likely to invest in foreign debt that offers either lower rates or higher risk.

If the United States lures capital away from the rest of the world, “the rose-colored view that we are helping everyone is very much in doubt,” said Robin Brooks, chief economist at the Institute of International Finance.

trade tensions with Europe, which the Trump administration treated like an adversary. President Biden met online with European leaders last week.

The U.S. stimulus packages “will be part of the water that lifts all boats,” Selina Jackson, senior vice president for global government relations and public policy at consumer products company Procter & Gamble, said during a recent panel discussion organized by the American Chamber of Commerce to the European Union. “We are hoping for a calm slide out of this economic situation.”

Keith Bradsher contributed reporting.

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European Central Bank to Step Up Stimulus to Keep Borrowing Costs Low

The European Central Bank moved Thursday to counteract market forces that are driving up borrowing costs worldwide, saying it would speed up its purchases of government and corporate bonds to make sure that credit in the eurozone remained cheap.

The action signaled that the bank was worried less about inflation than about the economic distress caused by the pandemic and the likelihood that the eurozone was in recession.

The bank had earlier allocated 1.85 trillion euros, or $2.2 trillion, to fight the effects of the pandemic and keep borrowing costs low. That sum remains unchanged, but the bank will now buy bonds “at a significantly higher pace than during the first months of this year.”

Interest rates in the bond market have been rising in recent weeks because investors are worried that inflation could rise when growth bounces back. Investors have been less willing to buy bonds at the same exceptionally low rates as before.

Underlying price pressures remain subdued in the context of weak demand and significant slack in labor and product markets,” Ms. Lagarde said after a meeting of the bank’s Governing Council. She added that she expected the eurozone economy to shrink in the first quarter of 2021, the second quarterly decline in a row, because of the slow pace of vaccinations and extended lockdowns.

Prices in the eurozone rose at an annual rate of 0.9 percent in March after falling for the last five months of 2020. Some economists expect prices to rise further as the effects of President Biden’s $1.9 trillion stimulus plan spill over into Europe.

Ms. Lagarde said the Governing Council had not taken the U.S. stimulus plan into account because it had not yet been signed into law. Mr. Biden signed the bill on Thursday.

The action announced on Thursday sends a strong signal to financial markets, which have been testing the central bank’s commitment to keep lending costs low in the eurozone while governments, corporations and individuals struggle through the pandemic.

Greenpeace activists landed motorized paragliders on the roof of the central bank’s high-rise headquarters in Frankfurt and unfurled a banner reading, “Stop Funding Climate Killers!”

Ms. Lagarde said on Thursday that she was “on the same page” with the activists in many ways, but added, “We don’t think this is the necessary way to conduct a dialogue.”

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