ECB's Advice, Powell Testimony, Xi's Breathing Room: Eco Day

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

  • The European Central Bank is getting some counterintuitive advice on how to respond to the euro area’s deepening economic slowdown: interest rates
  • Bloomberg Economics has trimmed its growth forecast for Germany
  • In Hungary, the author of record campaign of monetary stimulus is preparing to kick off a second term by rolling back unconventional measures in a shift toward tightening
  • Federal Reserve Chairman Jerome Powell will probably gloss over an emerging division among policy makers about what it will take for them to resume raising interest rates when he speaks to lawmakers on Tuesday
  • Former Fed Chair Janet Yellen says the U.S. economy “is doing well” and President Donald Trump doesn’t understand the central bank
  • Meanwhile, Trump raised the prospect that he could sign a new trade deal with his Chinese counterpart Xi Jinping
  • For China, Trump’s decision to extend a deadline on additional tariffs on Chinese goods provides Xi Jinping with some temporary relief as he struggles to arrest an economic slowdown
  • Trump’s attack on the World Trade Organization has U.S. farmers worried that the president’s ‘America first’ foreign policy approach will hamstring efforts to defend their interests

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