May's Brexit Back Down, Trump-Xi Dinner, Italy's Budget: Eco Day

(Bloomberg) -- Happy Wednesday, Europe. Here’s the latest news from Bloomberg Economics:

• U.K. Prime Minister Theresa May has backed down in a key Brexit battle with Parliament, ditching moves to stop lawmakers trying to re-write her plans
• New digs: Credit Suisse is set to make Madrid its post-Brexit trading hub in the EU after initially planning to move only some investment banking positions to the Spanish capital from London
• EU governments are discussing sanctions on Russia in the wake of its latest confrontation with Ukraine, though no action is likely until the facts are fully established
• Italy’s populist government is considering reducing a disputed budget deficit to between 2.2 and 2.3 percent of GDP in a concession to the EU
• Dinner date: Presidents Donald Trump and Xi Jinping will meet over dinner Saturday in Buenos Aires in a pivotal moment in their escalating trade war. China’s growth slowed for a sixth straight month in November as Vice Premier Liu He pledged to push ahead with opening up the economy
• Not-so-lucky country: Australia’s economy risks turning Japanese, with average growth over the past decade the slowest since 1984 and inflation at the weakest since the Beatles were together
• Federal Reserve officials on Tuesday sprinkled small doses of concern into otherwise upbeat assessments of the U.S. economy
• Jerome Powell’s nirvana is an unending cycle, writes Tom Orlik, exploring what might end it. Meanwhile, Trump renewed his attack on the Fed chief
• Sharp slide: Turkey went from top five to bottom of a list of attractive emerging markets in the past six months as economic growth prospects weakened

To contact the reporter on this story: Anirban Nag in Mumbai at anag8@bloomberg.net

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

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