Lagarde’s Lobbying, ‘Cautious’ Optimism, German Hope: Eco Day

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

• ECB President Christine Lagarde is facing calls to refocus her lobbying for looser fiscal policy on a euro-zone budget, rather than seeking national stimulus
• China’s chief trade negotiator said at a dinner Wednesday night that he was “cautiously optimistic” about reaching a phase one deal with the U.S., even as talks continue to stretch out amid tensions over Hong Kong and other issues
• As the U.S. and China struggle to agree a ceasefire in their trade war, Europe’s own pro-commerce stance still looks unshakable
• Investors are giving Germany the benefit of the doubt after a year of economic turmoil that put the economy on recession watch. Across the border, the Yellow Vest protests have done little to stymie foreign companies’ growing appetite to invest in France
• Concerted efforts by the European Commission to promote the benefits of free trade and stem an anti-globalization tide appear to have won support among EU citizens, with 60% of those surveyed saying they benefit from cross-border commerce
• Fed officials stressed that risks to the U.S. economy remained elevated as they agreed to put interest rates on hold following their third cut this year
• New forces are shaping economies across Asia, Tom Orlik writes in this Special Report
• Penang’s pastel-hued, colonial-era buildings speak to the Malaysian island’s history as a key trading post for the East India Company, when spices filled its warehouses and the British and Dutch vied for dominance in the region

To contact the reporter on this story: Michael S. Arnold in Singapore at marnold48@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Jiyeun Lee

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