European Trade Concern, Turkish Signals, Brexit Cost: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news from Bloomberg Economics to get your week started:

  • Euro-area manufacturers saw order growth slow to the weakest pace in two years after renewed concerns over trade prospects hit confidence
  • Turkey’s central bank signaled higher interest rates are in the offing after inflation rose more than forecast in August and producer prices surged
  • The Brexit vote has already cost Britain more than 2 percent of economic output, even before the nation formally exits the European Union, according to analysis by UBS Group AG
    • That came the same day as a report showing U.K. manufacturing growth unexpectedly slowed to the weakest in two years last month as export orders contracted amid a weakening of the global economy
  • The U.K. government has played down reports Governor Mark Carney is in talks with the Treasury about staying in the role beyond his planned departure date of June next year
  • Italy’s finance minister Giovanni Tria assured markets that September’s budget would not go off the rails, telling la Repubblica the nation’s yield spread will narrow once details are unveiled. On Friday, Fitch cut its outlook on Italy to negative
    • Meanwhile, the nation could find itself excluded from the heart of euro-area monetary policy once European Central Bank President Mario Draghi’s eight-year term ends in October 2019
  • India’s world-beating economic growth is running up against some big risks: high oil prices, emerging market stress and policy paralysis
  • South Africa’s central bank chief has a fight on his hands to protect the central bank’s $50 billion of reserves

©2018 Bloomberg L.P.