ECB Bond Review, Powell on Repeat, New Reality: Eco Day

(Bloomberg) -- Welcome to Monday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the week:

• The European Central Bank has launched a review of its pandemic bond-buying program, FT reports, to consider how long it should continue and whether its exceptional flexibility should be extended to older programs.
• It sounded like a broken record. Jerome Powell declared 10 times last week that the Fed has a “powerful” new monetary policy road map for returning the U.S. to full employment. Skeptics abound.
• More than a dozen central banks will confront a new reality this week -- a world where U.S. monetary policy stays ultra-loose for the foreseeable future.
• While Britain pioneered the world’s first industrial revolution in the 18th century, its latest one is looking very much on hold.
• U.K. house prices went up the most since September 2016 this month, as Britons’ pandemic-driven desire for more living space and a tax break on purchases pushed asking prices up by the most in four years.
• China’s one-year Loan Prime Rate was steady for a fifth straight month in September, suggesting the authorities are slowing the pace of easing as the economy recovers, Bloomberg Economics says.
• Bond investors are keen to see what Australia’s central bank does with its yield-curve control targets. Meantime, Prime Minister Scott Morrison expects to see a jobs bounce-back.
• Bloomberg New Economy finds that China is winning the trade war with the U.S.
• Turkey will probably suffer a shallower economic contraction than first anticipated, Goldman Sachs says, which also predicted the country’s interest rates may have to rise far higher.
• South Korea’s early trade data showed exports rebounding in September, buoyed by more work days and growing demand for cars and semiconductors.
• Powell and Mnuchin testify; EU Summit. The week ahead Sept. 21-25.

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