ECB Split on Easing, China Trade Shrinks, Powell Speaks: Eco Day

(Bloomberg) --

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

• Mario Draghi will test the composure of global policy makers this week as he unleashes a barrage of stimulus to shore up economic growth
• The contraction in China’s trade in August underscored what economists were already saying about the government’s stimulus efforts: they’re not yet enough to put a floor under the slowing economy
• Meantime, here’s a recap of what China has, and hasn’t done to address U.S. trade gripes
• Italy is expected to sell long-dated bonds this week just as investors are beginning to lose their appetite for such assets in the euro zone
• Federal Reserve Chairman Jerome Powell pushed back against perceptions that the U.S. economy was tilting into a recession, while leaving the door open to further interest-rate cuts to keep the country’s record economic expansion on track
• President Recep Tayyip Erdogan said Turkey will lower interest rates to single digits soon and inflation will follow suit
• Should the U.K. economy stumble over the edge of the Brexit precipice, here are ways that monetary policy could inject new forms of stimulus, writes Jamie Rush
• With less than two months before he steps down, Draghi will on Thursday convene policy makers for the penultimate time. Here’s our rundown of the week’s key economic events

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