Malaysia’s Central Bank Chief, Nafta Deadline, PMIs: Eco Day

(Bloomberg) -- Good morning Americas. Here’s news from Bloomberg Economics to help get your day started:

• Call it the return of history. A Bloomberg Economics analysis looking at the Group of 20 major economies finds just 32 percent of GDP is under control of mainstream democratic parties, down from 83 percent in 2007
• The U.S. Congress probably won’t have time to approve a new North American Free Trade Agreement this year, as Cabinet members from the three trading partners continue to negotiate changes to the pact, according to Senate Majority Whip John Cornyn
• Malaysia’s central bank Governor Muhammad Ibrahim offered to resign from his post two years into his term, according to people familiar with the matter
• Growth in the biggest part of the U.K. economy accelerated more than forecast in May, backing up the Bank of England’s view that a recent slump was temporary and keeping it on track for a rate hike in the summer
  • The BOE can still bring inflation to target if it waits a little while before delivering the necessary interest-rate increases, policy maker Silvana Tenreyro said
  • U.K. consumer spending grew strongly last month as the warmest May on record saw shoppers flock to the stores in droves
• Meanwhile in the euro area, services slowed more than expected in May
• South Africa’s economy contracted the most in nine years in the first quarter of 2018
• Bloomberg Economics’ David Powell looks at where Italy’s upheaval could spread to next and unearths some unexpected candidates
• President Donald Trump’s zeal for tariffs has yet to derail the global economic outlook for Wall Street, which is also getting more positive about emerging markets
• Emerging market economies will face stress as they cope with a stronger dollar and rising interest rates but Asia appears to be insulated, according to Raghuram Rajan, former governor of the Reserve Bank of India
• In India, an emerging-market selloff that’s hit hard presents its central bank with a choice: hold interest rates steady to keep the economy motoring or follow the example of the Philippines and Indonesia by raising to stem market pressure

To contact the reporter on this story: Zoe Schneeweiss in Zurich at zschneeweiss@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Marco Bertacche

©2018 Bloomberg L.P.