U.S. GDP, Draghi’s 7-Week Test, China’s Supply Chains: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help round off your week:

• Friday’s U.S. gross domestic product report, the last before the midterm elections that will determine control of Congress, will show just how much support the tight labor market and tax cuts are offering the economy amid rising uncertainty about trade
• At the Fed, two officials who vote on interest rates this year downplayed the effects on the economy of the rough October for U.S. stocks
• Those comments came as the U.S. merchandise-trade deficit widened to a record in September while orders for business equipment declined for a second month, hinting at softening demand
• With unemployment near a record low, many businesses have no choice but to spend to upgrade employee skills
• Mario Draghi’s confidence in the euro-area economy is about to face a seven-week test
  • Draghi also is facing a lot of questions on his home country these days, though the head of Italy’s Senate finance committee says the ECB president’s remarks about Italian lenders are ”inappropriate”
  • With the R word resurfacing: Is Italy heading for another recession?
• A no-deal Brexit would drag the U.K. economy to a near standstill next year, according to a new report
• Sweden’s central bank is planning to next year start a pilot project for a potential future electronic currency, the e-krona
• South African President Cyril Ramaphosa, who has embarked on a drive to attract $100 billion in new investment, said his administration has placed economic growth and job creation at the top of its agenda
• Meantime, China is banking on its dominance of global supply chains to help it ride out the pain from Donald Trump’s trade war
• In Japan, inflation in Tokyo remained unchanged this month, providing little incentive for the central bank to adjust policy at its board meeting next week
• India’s tight money conditions and fears of a contagion following a debt crisis at a local lender dented demand and put a muzzle on animal spirits in the world’s fastest-growing major economy
• Finally, catch up on this week’s events with our guide to what’s happened in the world economy in the past five days, and why it matters
  • And take a look at what’s set to happen next week

To contact the reporter on this story: Zoe Schneeweiss in London at zschneeweiss@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Joanna Ossinger

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