U.S. China Talks, Merkel's Priority, BOJ Words: Eco Day

(Bloomberg) -- Welcome to Thursday, Europe. Here’s the latest news from Bloomberg Economics:

• The revival of trade negotiations between the U.S. and China after a months-long standstill has generated new hopes in financial markets that an all-out trade war between the world’s two largest economies may be averted.
• Reloading. The Federal Reserve is ready to hike again so long as the U.S. economy stays healthy, minutes of its policy meeting showed. Meantime, policy makers’ discussion about how high to lift their target interest rate is intensifying
• Not quite right. U.S. unemployment is 3.9%, labor is short and yet wages are barely budging. Bloomberg reporters ask employers why
• Trade-off. Angela Merkel is prioritizing securing the European Commission presidency for Germany instead of the top job at the European Central Bank, according to Handelsblatt
• Stepping down? Australian Prime Minister Malcolm Turnbull must battle to survive another day of power plays before lawmakers head home for a two-week recess. The irony is he’s overseeing an economy doing nicely
• Lost in translation. The Bank of Japan’s words are diverging further from its actions and the erosion of its credibility could end up hurting the central bank, according to Kunio Okina, a former BOJ official

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