ECB Split on Easing, China Trade Shrinks, Powell Speaks: Eco Day

(Bloomberg) --

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

• Mario Draghi will test the composure of global policy makers this week as he unleashes a barrage of stimulus to shore up economic growth
• The contraction in China’s trade in August underscored what economists were already saying about the government’s stimulus efforts: they’re not yet enough to put a floor under the slowing economy
• Meantime, here’s a recap of what China has, and hasn’t done to address U.S. trade gripes
• Italy is expected to sell long-dated bonds this week just as investors are beginning to lose their appetite for such assets in the euro zone
• Federal Reserve Chairman Jerome Powell pushed back against perceptions that the U.S. economy was tilting into a recession, while leaving the door open to further interest-rate cuts to keep the country’s record economic expansion on track
• President Recep Tayyip Erdogan said Turkey will lower interest rates to single digits soon and inflation will follow suit
• Should the U.K. economy stumble over the edge of the Brexit precipice, here are ways that monetary policy could inject new forms of stimulus, writes Jamie Rush
• With less than two months before he steps down, Draghi will on Thursday convene policy makers for the penultimate time. Here’s our rundown of the week’s key economic events

To contact the reporter on this story: Jiyeun Lee in Hong Kong at jlee1029@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Karthikeyan Sundaram, Devidutta Tripathy

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