Mnuchin in Beijing, Europe's China Crackdown, Fed Calm: Eco Day

(Bloomberg) -- Welcome to Thursday, Europe. Here’s news from Bloomberg Economics to help get your day started:

  • A U.S. delegation led by Treasury Secretary Steven Mnuchin touched down in Beijing for talks on how to resolve simmering trade tensions with China. Expectations for a major breakthrough appear to be low
  • Meanwhile Europe is set to tighten controls over foreign investment, a sign of growing wariness of China
  • The Fed gave no indication of plans to veer from their gradual tightening of monetary policy after keeping rates on hold
  • At the same time, President Trump’s massive fiscal stimulus plans are pushing up bond issuance even as the Fed shrinks its balance sheet
  • The world economy showed signs of stabilizing after a recent moderation as manufacturing activity strengthened for the first time this year
  • The Czech central bank will likely predict that record-low unemployment and rising salaries won’t ignite inflation until 2019, undercutting chances of further rate hikes this year
  • In case you missed: the richest corner of Britain is struggling to balance the books

©2018 Bloomberg L.P.