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Brexit Effect, Lagarde’s Changing Role, Pimco on Trump: Eco Day

Brexit Effect, Lagarde’s Changing Role, Pimco on Trump: Eco Day

(Bloomberg) --

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

  • If Britain crashes out of the European Union without a transition pact, the knock-on effects would undermine an already fragile global economy
  • Christine Lagarde’s future role as president of the European Central Bank is being transformed -- even before she takes office -- into one that increasingly requires the skills of a political campaigner
  • America’s service industries joined manufacturing in taking a big step back last month, fueling concerns that the global slowdown and trade war are weighing more on the broader economy. That comes as a sharp slowdown in services in Germany suggests the pain from its industrial crisis is also spreading
  • Turkey’s central bank is working on a plan for looser reserve requirements to reward banks that support export-oriented industries, the latest step of a campaign to get credit flowing again
  • Bond giant Pimco says Donald Trump’s impeachment fight will make progress toward a trade deal even more elusive, as China won’t want to make concessions to a weakened U.S. president
  • Just a few miles apart, Hong Kong and Shenzhen offer two competing visions of China’s future
  • India’s central bank cut its key interest rate for a fifth straight time this year, moving aggressively to revive economic growth as the banking system faces new stresses.
  • Going against a central bank is an investment strategy fraught with peril, but some bond market analysts think the Bank of Japan will fail to steepen the yield curve

To contact the reporter on this story: Michael S. Arnold in Singapore at marnold48@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Michael S. Arnold, Jeffrey Black

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