Brexit Effect, Lagarde’s Changing Role, Pimco on Trump: Eco Day

(Bloomberg) --

Welcome to Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• If Britain crashes out of the European Union without a transition pact, the knock-on effects would undermine an already fragile global economy
• Christine Lagarde’s future role as president of the European Central Bank is being transformed -- even before she takes office -- into one that increasingly requires the skills of a political campaigner
• America’s service industries joined manufacturing in taking a big step back last month, fueling concerns that the global slowdown and trade war are weighing more on the broader economy. That comes as a sharp slowdown in services in Germany suggests the pain from its industrial crisis is also spreading
• Turkey’s central bank is working on a plan for looser reserve requirements to reward banks that support export-oriented industries, the latest step of a campaign to get credit flowing again
• Bond giant Pimco says Donald Trump’s impeachment fight will make progress toward a trade deal even more elusive, as China won’t want to make concessions to a weakened U.S. president
• Just a few miles apart, Hong Kong and Shenzhen offer two competing visions of China’s future
• India’s central bank cut its key interest rate for a fifth straight time this year, moving aggressively to revive economic growth as the banking system faces new stresses.
• Going against a central bank is an investment strategy fraught with peril, but some bond market analysts think the Bank of Japan will fail to steepen the yield curve

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