‘Economic Iron Curtain’, German Cars, Goldman on ECB: Eco Day
(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your week started:
- The U.S. and China are on the brink of a new Cold War, with experts such as former U.S. Treasury Secretary Hank Paulson warning of a new “Economic Iron Curtain” between the world’s two largest economies if they cannot resolve their strategic differences.
- The car industry is steering the German economy again, but the strength of the rebound -- and the year-end economic revival that hinges on it -- is in doubt as carmakers feel the pain of trade tensions and China’s slowdown.
- The European Central Bank could be forced to delay the start of interest-rate increases if the current slowdown in euro-area growth proves worse than anticipated, according to Goldman Sachs.
- A post-Brexit transition period is the most important part of negotiations for the Bank of England’s outlook, according to Deputy Governor Ben Broadbent.
- Italian industrial output fell less than expected in September, though the decrease will weaken the government’s budget arguments with a skeptical European Union.
- Calls are growing for an interest-rate cut from Chinese central bankers as the economic growth risks rise.
- Meanwhile, the Fed is looking for reasons to be optimistic about avoiding recession from Australia’s record run of economic growth
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