Japan's Brexit Fears, U.S.-China Talks, Yen in Demand : Eco Day
(Bloomberg) -- Welcome to Wednesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:
- Japan has a lot riding on Brexit. Few countries are as worried about the prospect of a disorderly exit, given the degree of foreign investment in the U.K., from carmakers Nissan Motor Co. to tech conglomerate SoftBank Group Corp. and fashion brand Uniqlo.
- Progress: U.S.-China trade talks in Beijing are progressing and will continue Wednesday, an American negotiator said. Chinese authorities plan to give a statement following the latest round of negotiations.
- Budget cap: China’s Finance Ministry is set to propose an annual fiscal deficit target of 2.8 percent of GDP for 2019, two people familiar with the discussions said.
- Unwanted strength: There’s a good chance the yen will strengthen to 100 against the dollar in coming months as slowing global growth and U.S.-China trade tensions keep investors on edge, a former senior Bank of Japan official said.
- Calendar change: Mark Carney will take some of the pressure off the next Bank of England governor by keeping the spotlight on himself.
- Troubled regions: Macron is trying to drag France into the era of affirmative action.
- Growth cut: The World Bank cut its forecast for the global economy as slowing growth in trade and investment and rising interest rates sapped momentum, especially in emerging markets.
- Vacancy: Former Federal Reserve economist Nellie Liang withdrew from consideration for a seat on the central bank’s board of governors, the White House said.
- Common refrain: President Donald Trump renewed his complaints about Fed rate hikes, calling borrowing costs “rapidly raised” even though the pace has been markedly slower than in previous decades.
- Downturn: Australian building approvals fell the most in a decade in a further sign that investors are pulling back from the housing market amid a prolonged price slump and tighter lending curbs.
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