Turkey Rate Decision, Fed Minutes, Flowing Euros: Eco Day

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

• Economists predict that Turkey’s central bank will hold interest rates today even as most say a hike is needed
  • Norway and the Philippines also are expected to hold
• U.S. central bankers backed off in July from a readiness to set a clearer bar for raising interest rates, a step that would underscore their commitment to an extended period of ultra-loose policy
• The ECB’s efforts to keep euros flowing through the global financial system helps monetary stimulus reach the real economy as well as strengthening the euro’s international role, according to two executive board members.
  • However, European workers may be about to get another round of bad news with the recovery threatened by fresh outbreaks and localized lockdowns
• HSBC Holdings Plc would like the Bank of England -- specifically the man in charge of forecasts -- to tone down its optimism over the U.K. economy
• The U.S. and China plan to reschedule trade talks postponed from last weekend aimed at reviewing progress for January’s agreement
• Australian policy makers are yet to make a compelling case against deploying negative interest rates to help revive the economy, according to Peter Tulip, who until last week was a senior member of the RBA’s economic research department
• China’s benchmark lending interest rate was unchanged for a fourth straight month in August. With July activity undershooting market expectations, there’s an increasing probability that the central bank will guide interest rates lower in the near future, according to Bloomberg Economics, who argue the financial system will need more long-term funds to stay accommodative
• Kim Jong Un acknowledged that North Korea’s development goals have been “seriously delayed,” in the latest sign that sanctions, flooding and the coronavirus have dealt a triple blow to the country’s already anemic economy
• The WTO is tamping down hopes for a V-shaped recovery for world trade
• A conspicuous silence from the Reserve Bank of India regarding support for bonds has traders wondering whether recent gains in yields are a new normal. Meantime, the RBI’s first Monetary Policy Committee completes its four-year term with a mixed record
• The World Bank is looking at ways to reduce the amount of debt owed by poor countries -- rather than simply delaying payments -- to attract more investors in the wake of the global pandemic and recession, President David Malpass said

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With assistance from Bloomberg