China Eases Squeeze, Global Growth Weakens, Fed Debate: Eco Day

(Bloomberg) -- Welcome to Tuesday, Asia. Here’s the latest news from Bloomberg Economics:

• China’s beleaguered private firms may be on the cusp of better times, amid signs a government push to boost bank lending is working. Meanwhile, one of the biggest beneficiaries of the U.S.-China clash may turn out to be a gritty Taiwanese town called Taoyuan
• The global economy headed into the final stretch of 2018 in weakened shape, handing investors renewed reason to question how much central banks will be able to tighten monetary policy next year. Already, global governments are doing the most to propel the world economy in a decade
• At a time when the Fed seems to have hit both goals -- maximum employment and stable inflation near 2 percent -- a researcher at the San Francisco branch is questioning the sustainability of recent price rises
• U.K. Prime Minister Theresa May will put her Brexit deal to Parliament for a decisive vote on Dec. 11, but the signs are she’s on course to lose. If she defies expectations, Dan Hanson anticipates a Brexit deal will deliver a 2019 sugar rush
• The Bank of Israel raised interest rates, an unexpected move that brought nearly four years of record-low borrowing costs to a close
• ECB President Mario Draghi said at least some of the slowdown in the euro area may be “temporary,” confirming he remains on track to end bond purchases in December. Over in Hamburg, an uncomfortable question at a Europe-China forum showed how Beijing’s mass detention of Muslims is complicating its diplomatic agenda around the globe
• Real wage growth in the G-20 slowed last year, especially in advanced economies, as inflation eroded pay gains

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Chris Bourke

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