Eurozone Growth Concerns, BOE's Brexit Rut, Fed's Turn: Eco Day

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

• Bank of Italy Governor Ignazio Visco joined his European counterparts in signaling that economic growth will be much weaker than predicted, warning of the implications for euro-area inflation. Italy is also open to Bundesbank head Jens Weidmann succeeding Mario Draghi as president of the European Central Bank
  • Here’s a look at Italy’s staggering debt
• Stuck. Bank of England officials are stuck in a Brexit rut, as the U.K.’s increasingly chaotic political backdrop looks set to drown out any talk of higher interest rates. Still, Dan Hanson reckons the BOE is likely to convey a hawkish message
• Even the fastest pace of economic growth in six years won’t put Russia back on the road to full recovery
• Higher prices. A runup in Turkey’s food costs is threatening to halt a broader deceleration in price growth
• Spending by U.S. cities and states is a bright spot that could help to extend the expansion, now in its 10th year and within months of becoming the longest ever
• Take note. Tom Orlik looks at what spooked the Federal Reserve into its dovish turn and how a weakening China, slowing Europe and other factors threaten global economic growth
• Decoding Fed. A change in the Fed’s tone may mean investors shouldn’t be driven by fears of recession for now, says JPMorgan. The Fed’s newfound caution toward shrinking the balance sheet still has rates traders working to decode its implications
• Slump. Australia’s falling unemployment is propping up households and allowing the economy to absorb a property slump, meaning the central bank can afford to stay on the sidelines -- for now. Meanwhile, building approvals suffered their biggest annual back-to-back drop in almost a decade as a housing slump deepens
• Reversal. Philippine central bank Deputy Governor Diwa Guinigundo said a quick reversal of last year’s monetary tightening -- either through a reduction in the amount of cash that banks must hold as reserves or a cut in key interest rates -- would be “bad economic or monetary policy.”

To contact the reporter on this story: Anirban Nag in Mumbai at anag8@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Karthikeyan Sundaram, Tuhin Kar

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