Weidmann's ECB Message, Macron Hemmed In, Fed's Worry: Eco Day

(Bloomberg) -- Good Tuesday morning, Europe. Here’s the latest news and analysis from Bloomberg Economics:

• The European Central Bank shouldn’t waste any time in normalizing monetary policy, according to Bundesbank President Jens Weidmann
• Italian Premier Giuseppe Conte says he’s working hard to bring down the budget deficit and avoid fines from the EU for breaching fiscal rules
• French President Emmanuel Macron could introduce emergency tax cuts to quell violent protests, a move that risks worsening the country’s budget deficit. Just 18 months after taking office, he looks hemmed in on all sides
• Stephanie Flanders surveys the international scene in search of fresh fuel to fire global economic growth
• President Donald Trump framed his weekend trade truce with China’s Xi Jinping as an “incredible deal,” yet the leaders’ Buenos Aires steak dinner risks extending rather than ending the trade war. Trump also left his top advisers scrambling to explain a deal he claimed he’d struck with China to reduce tariffs on U.S. car exports
• The Fed’s No. 2 official made clear in a discussion about inflation that he remains more concerned about falling short of its 2 percent objective than running above it; Richard Clarida also cautioned investors against thinking the central bank would act to halt a sharp market decline
• Australia’s booming jobs market emboldened the central bank to scrap a long-held reference to weak wages, even as it signaled concern about a slump in an unchanged interest-rate decision

To contact the reporter on this story: Connor Cislo in Tokyo at ccislo@bloomberg.net

To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net

©2018 Bloomberg L.P.