No Rate Relief From Coeure, Disinflation Stalks Sweden: Eco Day

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Welcome back from Easter holidays, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• The ECB’s Benoit Coeuresaid he doesn’t see any reason to dilute the effect of negative interest rates on banks and signaled a new long-term loan series may be less generous than the previous round
• As in some other developed nations, a slowdown in inflation is once again plaguing Sweden’s central bank
• Donald Trump shelved his plan to appoint Herman Cain to the Fed and Democrats are urging Republicans to also block the president’s other pick, Stephen Moore
• The Fed seems resigned to running a heightened risk of asset bubbles and other financial excesses as they seek to keep the economic expansion going
• That’s coming as the Fed is losing its forecasting edge versus private economists, according to Goldman Sachs. They say the higher quality and quantity of private forecasters makes it harder for anyone, including Fed staff, to beat the “wisdom of the crowd”
• Long-term borrowing costs in the U.S. and Canada edged into restrictive territory in 2018 before returning to an accommodative position in the opening months of 2019, according to a new analysis of the neutral interest rates in major economies by Bloomberg economists
• Two of the earliest indicators for Asian trade continued pointing down, undercutting hopes for a rebound as the U.S. and China head toward a settlement. Slowing sales at Caterpillar, a bellwether for the world economy, are likely to add to angst over global growth
• China’s top policy makers are less worried about the economy and are looking beyond the current downturn to tackling long-term structural reforms, says Bloomberg’s Qian Wan, while Chinese markets fell on Monday after policymakers signaled they’re less comfortable about adding stimulus
• The Bank of Japan heads into this week’s policy board meeting with downside risks alive and well -- though not as menacing as before China’s economy showed signs of stabilizing, says Yuki Masujima

To contact Bloomberg News staff for this story: James Mayger in Beijing at jmayger@bloomberg.net

To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Henry Hoenig

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With assistance from Bloomberg