Trade War Impact, ECB Tiering Query, Fed Repo Doubt: Eco Day

(Bloomberg) --

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your day and week started:

• The impact of Donald Trump’s trade war is starting to be felt in Alabama -- home to Airbus, Mercedes and a busy port
• Recent turbulence in U.S. money markets has cast light on a big problem hidden at the root of the Federal Reserve’s conduct of monetary policy: It is targeting an increasingly irrelevant interest rate
• Weighed down by trade tensions with the U.S., China’s economy is at the weakest it has been all year in the third quarter. Now, ahead of a fresh round of talks in Washington, Chinese companies are gearing up to buy more U.S. pork
• Almost two weeks after the European Central Bank announced new stimulus measures, economists are still debating whether the plan will work the way it’s meant to, with some fearing it may have inadvertently tightened monetary policy
  • Meanwhile, incoming ECB head Christine Lagarde says the global economy appears headed for “mediocre growth” -- but no recession
• Italy’s 2020 budget is still in a state of flux, but one thing appears certain: there won’t be a repeat of last year’s bruising battle with the EU
• Turkey’s central bank has limited policy space after “front-loaded” monetary easing in July and September, Governor Murat Uysal said in a rare public appearance

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

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Brian Swint

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