Krugman Warning, U.K.'s Brexit Jitters, Spanish Wages: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your Monday started:

• Nobel laureate Paul Krugman said the U.S. economy may be heading into a recession at a time when the Federal Reserve doesn’t have the firepower to properly combat a slump.
• Brexit uncertainty has dragged U.K. investment to its worst slump since the financial crisis, with a report Monday showing gross domestic product increased a smaller-than-forecast 0.2 percent in the fourth quarter.
  • The report highlighted that businesses cut investment in the U.K. for a fourth straight quarter, the longest continuous decline since the financial crisis a decade ago.
• Spain is embarking on a major economic experiment: A 22 percent jump in the minimum wage that’s ignited a high-stakes debate about how it will impact the economy
  • As the rest of the euro zone economy slows, Philip Lane is about to secure his appointment to one of the European Central Bank’s most influential positions.
• The man who helped found Brazil’s central bank didn’t live long enough to see his grandson take over as its next president, but his legacy appears to have survived.
• The downward pressure on China’s consumption persisted over the Lunar New Year holiday, the annual festival when people travel, shop, and give gifts or money.
• Trade talks between the U.S. and China begin in Beijing, with lower-level officials meeting from Monday, and United States Trade Representative Robert Lighthizer and Secretary of the Treasury Steven Mnuchin meeting on Feb. 14-15 with Chinese negotiators.
• Finally, here’s a look at the long reach of the last housing crash.

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Brian Swint

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