European Budget, Swedish Pitfalls, Argentina Woes: Eco Day

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

  • Europe’s budget season is kicking off, and while Italy is attracting most of the attention, other countries are having to navigate their own issues and work out their fiscal plans for the coming year
  • Pitfalls ahead: Sweden faces a heap of economic challenges ahead. There is an election this Sunday and the new government faces the prospect of a recession and tighter monetary policy
  • Seat on the table: Austria’s new government said it’ll bid for a seat at the European Central Bank’s top table next year as euro-area nations jostle for roles in a shake-up of key monetary and political posts
  • Extra time: Mark Carney put the ball firmly in the Treasury’s court regarding his future at the Bank of England
  • Just fine: The Bank of Japan judges its recent policy adjustments to be working well, suggesting no need for more changes in the near term
  • Liquidity levers: China drained funds from the short-term money market in August, a move that complements efforts to support lending to the real economy
  • Trade tensions: Conflict over China’s industrial policies is at the center of a trade war that’s set to escalate should President Trump go ahead with tariffs on another $200 billion of goods
  • Growth sizzles: Australian consumers fueled an economic expansion in the second quarter that beat forecasts to be the fastest in almost six years
  • Confidence knocked: Traders have increased bets on a New Zealand interest-rate cut as a prolonged slump in business confidence adds to the risk of sluggish economic growth
  • Inflation shocker: Philippine central bank Governor Nestor Espenilla said he will consider the need for more policy action after a report showed inflation exceeded 6 percent for the first time in nine years in August
  • More pain: Argentina’s economic outlook deteriorated significantly in August amid a renewed currency crisis, say economists surveyed by the central bank
  • Stand pat: Malaysia’s central bank is set to keep interest rates unchanged today, providing policy stability amid worries about government finances
  • Headwinds gathering: India’s rupee owes its tag of Asia’s worst-performing currency this year to the selloff sweeping emerging markets -- there’s more pain in store
  • Take a breather: After hiking rates in July, Canada will likely pause in September to assess the impact of trade tensions with Trump, says Tim Mahedy

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