Small Package, Fed’s Dot Plot, No-Deal Brexit Recession: Eco Day

(Bloomberg) --

Welcome to Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to take you through to the weekend:

• The European Central Bank’s chief economist said there’s room to cut interest rates further and described a stimulus offering that split policy makers as “not such a big package”
• France’s latest draft budget marks a shift that strains public finances and gives the economy a boost as the outlook darkens
• A no-deal Brexit in the U.K. will most likely result in a recession next year, above-target inflation and interest-rate cuts by the Bank of England, according to Bloomberg Economics
  • U.K. consumer confidence held up better than expected this month in the face of fresh political turmoil over Brexit, according to a survey
• The Federal Reserve’s “dot plot” of interest-rate projections shows plenty of disagreement over the future course of U.S. interest rates -- but Chairman Jerome Powell still won’t have much trouble corralling his colleagues into another cut if that’s what he wants
• Executives from the biggest U.S. financial firms are meeting with regulators in Beijing, a sign the trade war has done little to derail China’s opening of its $43 trillion financial system
• Income inequality in America widened “significantly” last year, a U.S. Census Bureau report finds
• What worked to raise China’s prosperity yesterday no longer works as well today -- and the country needs a new approach, Chang Shu writes. Here’s why this year’s National Day means so much to China
• Presidential candidate Alberto Fernandez indicated he would tackle Argentina’s debt problem by adopting a strategy similar to that of Uruguay, which successfully extended its bond maturities in 2003
• One advantage of President Donald Trump’s pursuit of bilateral trade talks like his limited agreement with Japan is that any deals won’t have to run Washington’s legislative gauntlet

©2019 Bloomberg L.P.