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ECB Bond Splurge, Next China, Germany Inc.’s Headache: Eco Day

ECB Bond Splurge, Next China, Germany Inc.’s Headache: Eco Day

(Bloomberg) --

Welcome to Tuesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

  • The European Central Bank started its second round of corporate bond purchases by purchasing in a week an amount that analysts expected it to buy in a month
  • If not China, where? Bloomberg Economics’ Chang Shu and Justin Jimenez explore which country could be Asia’s next export powerhouse; the analysis and an interview of companies show no single economy has the wherewithal to step into China’s shoes
  • Bloomberg Econoics says a sharp slowdown in China’s credit expansion in October underlines weakness in demand and supply of loans and foreshadows a further slowdown in the economy
  • German businesses are more pessimistic on one of their biggest markets than they’ve been in years. A survey of companies with operations in China showed only a quarter expect to meet or exceed their business targets this year
  • New Zealand’s central bank may cut interest rates to a fresh record low on Wednesday as it seeks to boost economic growth and revive inflation, although its final review of the year is proving hard to predict
  • The Swedish government has requested a meeting with the director general of the country’s statistics office due to quality issues with recent labor market data, media reported
  • Bloomberg Economics says the Reserve Bank of Australia’s updated forecasts send a clear signal it has more work to do to get inflation back to target
  • Meantime wildfires were bearing down on rural communities along Australia’s east coast on Tuesday as authorities warned that strong winds and soaring temperatures would make conditions increasingly dangerous

To contact the reporter on this story: Enda Curran in hong kong at ecurran8@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Jiyeun Lee

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