BOE Rate Decision, Brexit Deal, Eurozone, Asia Slowdown: Eco Day

(Bloomberg) -- Welcome to Thursday, Europe. Here’s the latest news from Bloomberg Economics:

  • The BOE is seen voting 9-0 to stand pat today, although the Budget and Brexit will weigh on the discussion. This week’s fiscal giveaway bolsters the case for a near-term rate hike, but with Brexit talks at a critical stage, a hawkish turn is unlikely
  • Deal or no deal: U.K., EU negotiators have reached tentative agreement that would give U.K. financial services companies continued access to European markets after Brexit, Times of London reports, citing unidentified government sources
    • Meanwhile, British and European officials hailed progress in Brexit negotiations, with the U.K.’s lead negotiator predicting a deal will be finalized by Nov. 21
  • Slowdown risk: The euro area’s economic slowdown is fostering speculation over what tools Mario Draghi might deploy if the European Central Bank decides that growth and inflation are at risk
  • Public spat: Italy’s central bank governor and finance minister publicly sparred over the populist government’s plan to solve chronic low growth by boosting spending
  • Warning signs: Manufacturing gauges for some of Asia’s most export-driven economies slipped into negative territory in October, highlighting the spillover effect from the U.S.-China trade war
  • Bird’s eye view: China’s leadership signaled further stimulus measures are being planned as disappointing economic data signal the current piecemeal approach isn’t working. Satellite imagery shows Chinese manufacturing output contracted in October
  • Jobs growth: U.S. employment costs rose by more than forecast as increases in private wages and salaries accelerated. Still, new research shows Americans are willing to give up “substantial” earnings in exchange for perks
  • Battle lines drawn: India is the latest country to see age-old tensions between governments and central banks flare up as the era of easy money draws to a close
  • Don’t miss the next part of Stephanie Flanders’ New Economy podcast

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