ECB Stimulus, Britain’s Contraction, Turkey’s Catch 22: Eco Day

(Bloomberg) --

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

• Financial firms including Goldman Sachs Group Inc. and Morgan Stanley are predicting that the European Central Bank’s flagship crisis-fighting tool -- quantitative easing -- will soon make a comeback
  • The ECB will have plenty of newer notes to consider if it returns to the corporate-bond market as part of stimulus measures
• The U.K. economy probably shrank for the first time since 2012 in the second quarter, according to Bloomberg’s latest survey of economists
  • More than half of U.K. businesses with non-British staff say they would be harmed by post-Brexit immigration plans, BCC says
• Turkey’s new central bank chief faces one of the toughest acts the world of central banking has to offer. Cut interest rates too little and risk President Recep Tayyip Erdogan’s ’s fury; cut too much and watch markets suffer
  • Bloomberg Economics’ Ziad Daoud examines how the central bank may walk the tightrope between Erdogan and markets
• Caught between major central banks eyeing monetary stimulus and a strong local economy, the Bank of Israel is sticking to its forecast of raising borrowing costs by the end of September
• A drop in prices for cabbages and cucumbers in Russia helped decelerate inflation in June, paving the way for the central bank to deliver a second consecutive interest-rate cut later this month.
• Resurgent tensions between Japan and South Korea threaten to wallop chipmakers from Samsung Electronics Co. to SK Hynix Inc., upsetting a carefully choreographed global supply chain by smothering the production of memory chips and other components vital to widely used devices.

To contact Bloomberg News staff for this story: James Mayger in Beijing at jmayger@bloomberg.net

To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Paul Jackson, Zoe Schneeweiss

©2019 Bloomberg L.P.

With assistance from Bloomberg