Merkel’s ECB Pitch, China Slowdown, Doves Fly Higher: Eco Day

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

• Angela Merkel might have struck out with her pick for the European Commission, so the German chancellor is more likely to turn focus to the European Central Bank’s top gig
• Economists see a flat-line trajectory for U.K. economic growth, with the Bank of England pausing on interest rates until late 2020, according to a Bloomberg poll
• Norway’s central bank is set to raise interest rates again as a boom in oil wealth spending and investments put Scandinavia’s richest economy at odds with a global economic cooling
• Slowdown in China. China’s economy is on a slippery slope, according to the May performance of key barometers watched by Bloomberg Economics; the world’s No. 2 economy also has trimmed its holdings of U.S. Treasuries to a two-year low
• Doves return. The Reserve Bank of Australia is signaling another interest-rate cut could be on the cards again soon, according to minutes from its June 4 meeting; Brazil, too, is looking like it’ll cut rates more this year amid limp growth
• Unwanted pair. In a double-dose of weak economic data out of the U.S., home-builder sentiment notched a surprise first drop since 2019, and a Federal Reserve gauge of factories in New York state plummeted in June by the most on record

To contact the reporter on this story: Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Karthikeyan Sundaram, Pradeep Kurup

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