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EU's Top Job, U.K. Confidence Dip, Multiple Fed Cuts: Eco Day

EU's Top Job, U.K. Confidence Dip, Multiple Fed Cuts: Eco Day

(Bloomberg) --

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

  • Acceptance is growing for European Union chief Brexit negotiator Michel Barnier to be appointed the bloc’s most senior official, even as his natural allies remain unconvinced.
  • U.K. consumer confidence took another dip in June as Britons became more pessimistic about their personal finances in the face of Brexit uncertainty.
  • Economists now expect the Federal Reserve to cut interest rates multiple times this year -- coming round to the view held by investors, though they haven’t gotten all the way there yet.
    • Separately, it’s too early to know whether policy makers should cut and whether such a reduction should be a quarter or half percentage point, San Francisco Fed chief Mary Daly said.
  • In the Chinese export heartland of Foshan, it’s not Donald Trump’s tariffs that have Li Yuanfa fearing for the future of the bathroom supplies manufacturer he works for, but the broader economic uncertainty that they have wrought.
  • Bloomberg Economics’ Tom Orlik plots a potential path forward for U.S.-China trade negotiations. With the course of the U.S.-China trade war at stake, Saturday’s presidential meeting between the two countries has the potential for major implications for yuan.
  • Japan’s factory output expanded the most in more than a year in May, signaling fresh resilience despite a global economic slowdown and rising trade tensions. A Bank of Japan board member tried to rule out a lowering of Japanese interest rates, saying they were already close to an unfavorable tipping point.

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, Henry Hoenig

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