Fed Decision, Transatlantic Trade, Leaving Dubai: Eco Day

(Bloomberg) -- Welcome to Wednesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• Federal Reserve policy makers are all but certain to keep the benchmark overnight rate in a target range of zero to 0.25% when they wrap up a two-day meeting Wednesday

• U.K. Chancellor of the Exchequer Rishi Sunak is being asked by members of the ruling Conservative party to take his time to pay off the record debt the country is racking up as it tries to weather the coronavirus pandemic

  • The U.K. should introduce a universal basic income to get cash to struggling Britons, along with a raft of other measures, according to proposals by the Royal Society for Arts
• European Union efforts to soothe transatlantic trade tensions have stalled, according to the bloc’s trade chief, who said the upcoming U.S. election means any breakthrough may be delayed until after November
• The coronavirus pandemic and a wave of social unrest have put a spotlight on racial inequality in America. A shift in focus at the U.S. central bank is adding to the glare
• Across the Persian Gulf, foreigners are weighing whether to stay or leave as fallout from the pandemic and a plunge in energy prices force economic adjustments
• China’s factory deflation deepened in May and consumer-price gains slowed, signaling that the recovery from the coronavirus slump remains uncertain
• The surprise rebound in the U.S. job market is leading some Republicans to question the need for more stimulus, as Congress debates whether to renew the extra benefits it approved for unemployed Americans during the pandemic
• Asia’s stabilizing financial markets are allowing the region’s central banks to exhale as currencies find their feet and investor money returns
• A majority of economists expect the Bank of Japan to leave its main policy tools untouched next week as it pauses to assess the steps already taken to shield the economy from the coronavirus

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