Fed Conspiracy Theories, U.S. Jobs Day, European Data: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your Friday started:

• The momentous, mysterious monetary U-turn by Federal Reserve Chairman Jerome Powell and his colleagues this week has spawned a host of conspiracy theories as to what’s really going on at the world’s most powerful central bank.
• Meanwhile, it’s jobs day in the U.S., and the report could show hiring probably hit another milestone in January. Bloomberg’s Carl Riccadonna says the report may even set the stage for the Fed to return to talk of interest-rate hikes.
• Global manufacturing looked a little weaker in January, and euro’s area’s inflation rate declined further, though there was a small pickup in core.
  • Italy isn’t showing any signs of a turnaround from its recession, reporting a drop in factory orders last month.
• However, don’t expect Mario Draghi to be as quick as his U.S. Federal Reserve counterpart to switch policy stance if the euro region’s slowdown worsens.
• U.K. manufacturers are building up stocks at the fastest pace on record as concerns about Brexit intensify.
• China promised to “substantially” expand purchases of U.S. goods after the latest round of trade talks, and both sides planned further discussions to reach a breakthrough
• Finally, here’s our weekly wrap of what’s going on in the world economy.

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editor responsible for this story: Fergal O'Brien at fobrien@bloomberg.net

©2019 Bloomberg L.P.