Italy's Test, Fed Keeps Raising, New Japan Trade Talks: Eco Day

(Bloomberg) -- Welcome to Thursday, Europe. Here’s the latest news from Bloomberg Economics:

• Italy’s government is bracing for the first major test of its unity as coalition partners seek a fiscal framework to determine spending on expensive electoral promises
• The Federal Reserve raised rates and cemented expectations for another hike this year; Jerome Powell sees a U.S. economy capable of humming along without support. Carl Riccadonna reckons the FOMC is looking to overshoot to ensure a soft landing
• Meanwhile, President Trump is "not happy" with the Fed’s decision
• French President Emmanuel Macron said he’d welcome Britain back should its voters decide in a second referendum to stay in the EU
• Global leaders and top executives pledged their commitment to free trade, offering a rebuke to Trump’s protectionism. Meantime, Trump announced he has reached an agreement with Japan to open trade talks
• Parched Australia. In the world’s driest inhabited continent, enduring a devastating drought that arrived mid-winter, private action to prepare for climate change comes in stark contrast with government paralysis
• As the trade war heats up between the U.S. and China, military tensions are also rising
• Chinese non-financial corporate debt is rising again as a percentage of GDP following a year and a half of deleveraging from its mid-2016 record

To contact the reporter on this story: Connor Cislo in Tokyo at ccislo@bloomberg.net

To contact the editors responsible for this story: Brett Miller at bmiller30@bloomberg.net, Chris Bourke

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