Trump Warns on Brexit Deal, Draghi's Legacy, Tariff War: Eco Day
(Bloomberg) -- Welcome to Tuesday, Europe. Here’s the latest news from Bloomberg Economics:
- President Donald Trump dropped a rhetorical bomb on U.K. Prime Minister Theresa May’s efforts to get a Brexit agreement through parliament, warning the deal she reached with the EU could jeopardize Britain’s ability to strike a trade pact with the U.S.
- Preparations: The U.K. is inching closer to a Brexit deal but business can’t relax yet. The draft agreement with the European Union, signed-off by 27 member states at a Nov. 25 summit, would help companies plan for Britain’s departure.
- Mario’s legacy: On July 26, 2012, the European Central Bank president drew a line in the sand and framed his legacy. Here is the story behind the ‘Whatever it Takes’ moment
- Draghi on Monday said at least some of the slowdown in the euro area may be “temporary,” confirming that the institution remains on track to end bond purchases in December.
- Tariff tiffs: Trump said he’ll likely push forward with plans to increase tariffs on $200 billion of Chinese goods, indicating he would also slap duties on all remaining imports from the Asian nation if negotiations with China’s leader Xi Jinping fail to produce a trade deal.
- Squeeze easing: China’s beleaguered private firms may be on the cusp of better times, amid signs a government push to boost bank lending is working. Meanwhile, one of the biggest beneficiaries of the U.S.-China clash may turn out to be a gritty Taiwanese town called Taoyuan.
- Fading momentum: The global economy headed into the final stretch of 2018 in weakened shape, handing investors renewed reason to question how much central banks will be able to tighten monetary policy next year.
- The good and the bad: After starting the year on a high note, emerging-nation equities are poised for their fifth annual decline of the past decade. The good news is that market players see clouds lifting -- or at least clearing up some -- for 2019.
- Surprise hike: The Bank of Israel raised interest rates, an unexpected move that brought nearly four years of record-low borrowing costs to a close.
- Wage slowdown: Real wage growth in the G-20 slowed last year, especially in advanced economies, as inflation eroded pay gains.
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