U.S. Repo, BOE's Hawk Turns Dovish, European Woe: Eco Day

(Bloomberg) --

Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to take you through to the weekend:

  • Behind-the-scenes regulatory requirements imposed on the largest U.S. banks may help explain one mystery spawned by recent turmoil in an obscure, but important, slice of the multitrillion-dollar money market.
  • Michael Saunders, previously seen as one the Bank of England’s most hawkish officials, turned dovish in a speech Friday, saying the institution may have to cut interest rates even if the U.K. avoids a no-deal Brexit
    • Meanwhile, Bloomberg Economics says a no-deal Brexit in the U.K. is now likely early next year, an outcome it says will drag the nation into a recession and push inflation higher
  • The U.K.’s exit is also having an impact overseas, as a report showed the outlook for the euro-area economy has taken another hit, with confidence in industry dropping to its lowest in six years in a sign that the impact of uncertainty from trade tensions and Brexit is getting worse
  • Germany, a founding member of the euro area and by far its biggest economy, is hunting for someone who can stick with a top job at the European Central Bank
  • Finally, here’s our weekly compilation of the best of Bloomberg Economics

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