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

To contact Bloomberg News staff for 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, David Goodman

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With assistance from Bloomberg