U.S. Home Sales, Fed Beige Book, Brexit Fallout for BOE: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your Wednesday started:

  • Home sales in the U.S. slumped in December, while prices inched up slightly, marking the smallest annual increase since the end of the last housing crash in 2012
  • The Fed publishes its Beige Book today, which will help form the basis for deliberations at the Fed’s next policy meeting at the end of the month
  • The stock-market sell-off is going to be a significant drag on the U.S. economy this year as wealthy households feel its impact, according to Goldman Sachs
  • Prime Minister Theresa May’s landmark defeat may mean a delay to the next increasein interest rates, with the Bank of England highly unlikely to hike until the shape of Brexit is known
    • Mark Carney said the BOE is in discussions with the U.K. Treasury about the powers it needs to smooth any financial ructions if the country leaves the European Union without a deal
    • U.K. inflation fell to its lowest rate in almost two years in December as the cost of filling up a vehicle plunged
  • The German government is planning to extend the contract of Bundesbank President Jens Weidmann by another eight years when it expires at the end of April, according a person familiar with the matter. He’d then wait and see if he is picked to succeed Mario Draghi as ECB president in November, the person said
    • The German economy will have to lean on homegrown support to put the brakes on a slowdown after its worst performance in five years
  • Turkey’s central bank held rates for a third straight meeting as a weak lira stalks an economy still reeling from a summer currency crash
  • Africa’s key central banks are expected to hold benchmark interest rates at their first meetings of the year -- albeit for different reasons
  • China’s central bank boosted injections via open-market operations to the most on record to meet seasonal demand for cash due to tax payments and major holidays
  • The failure to tackle climate change and extreme weather events are the most threatening global risks this year, according to the World Economic Forum

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