Fed's Buckle, Europe's GDP, Japan's Stance on Yen: Eco Day

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

• The Federal Reserve signaled it’s done raising interest rates for a while and will be flexible in reducing its bond holdings, a sweeping pivot from its bias just last month
  • Bloomberg Economics Carl Riccadonna argues the Fed’s guidance strongly implies it’s contemplating the end of the tightening cycle
• Here’s a preview of first readings of Spanish, Italian and euro-area GDP due today
  • Italian Prime Minister Giuseppe Conte may already have let the cat out of the bag
• That data will provide food for thought for Philip Lane, poised to become the next European Central Bank chief economist after no contenders emerged to challenge for one of the key monetary-policy jobs in the euro area
• Meanwhile, the U.S. and China launched high-level trade talks in Washington with few signs that Beijing will bend to demands to deepen economic reforms
• As those talks continue, the first official gauge of China’s economy in 2019 showed a slowdown in the manufacturing sector eased a little in January
• Also on trade, Japan’s top currency official indicated the country would oppose including a currency clause in any U.S. trade deal reached. Data showed Japan’s factory output slipped again in December

To contact the reporter on this story: Enda Curran in Hong Kong at ecurran8@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Henry Hoenig

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