What Spooked Fed, BOE's Brexit Rut, Aussie Rate Debate: Eco Day

(Bloomberg) -- Welcome to Monday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Tom Orlik looks at what spooked the Federal Reserve into its dovish turn and how a weakening China, slowing Europe and other factors threaten global economic growth
• Bank of England officials are stuck in a Brexit rut, as the U.K.’s increasingly chaotic political backdrop looks set to drown out any talk of higher interest rates. Still, Dan Hanson reckons the BOE is likely to convey a hawkish message
• Australia’s falling unemployment is propping up households and allowing the economy to absorb a property slump, meaning the central bank can afford to stay on the sidelines -- for now
• The Fed’s change in tone may mean investors shouldn’t be driven by fears of recession for now, says JPMorgan. The Fed’s newfound caution toward shrinking the balance sheet still has rates traders working to decode its implications
• Bank of Italy Governor Ignazio Visco joined his European counterparts in signaling that economic growth will be much weaker than predicted, warning of the implications for euro-area inflation

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Chris Bourke

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