ECB ‘Tiering’ Push, Fed Options, U.S.-China Peace Moves: Eco Day

(Bloomberg) --

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

• European Central Bank officials are looking to employ “tiering” to ease the impact of negative rates -- here’s a QuickTake on the tool; frustrating the ECB’s stimulus efforts, euro-area inflation probably was stuck at 1% for September, Bloomberg survey forecasts show ahead of Tuesday’s release
• British businesses are getting increasingly gloomy about the economy as Brexit approaches, according to the Lloyds Business Barometer
• Size matters. The Federal Reserve has opted for a more organic balance-sheet increase, while financial analysts are calling for something much bigger
• Peace offerings. The U.S. said there aren’t any current plans to stop Chinese companies from listing on U.S. exchanges, responding to such reports; China is talking big about financial-market opening ahead of a planned next round of trade talks with the U.S.
• Japanification. After two delays, Japan is going through with its consumption tax hike that’ll add to pressures on the economy’s central bankers to revive growth; here are some signs that the BOJ is leaning toward stimulus -- on top of limp factory output reported Monday
• Less ailing. In the first of the week’s round of big PMI reports, China’s manufacturing sector improved while remaining in contraction
• Diamond in rough. Economists are starting to mark up 2019 economic growth forecasts for Vietnam on the heels of a blowout pace for the third quarter reported Saturday

To contact the reporter on this story: Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

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