Art of the (No) Deal, More Trade Threats, Aussie Rates: Eco Day

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

• Chances of a “no deal” Brexit are on the rise, with International Trade Secretary Liam Fox warning that’s more likely than not, a few days after Bank of England chief Mark Carney said the probability was “uncomfortably high”
• Buckle in. China says it’s prepared for an extended trade war with the U.S. while Trump says he has the upper hand, and it’s all making for an unfavorable rhythm to U.S.-China talks
• 5 is the new 3. Jamie Dimon said the U.S. should be on guard for the cascading effects of higher interest rates, with the 10-year bond yield potentially soaring to 5% or higher
• Dreamy growth. Jokowi’s aim for 7% growth is a distant target as he prepares for a re-election run
• Hold it right there. A slide in housing prices offers one more reason for Australia’s central bank to keep off the interest-rate trigger

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