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

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