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Fed Extended Pause, NZ’s Surprise Hold, India’s Onions: Eco Day

Fed Extended Pause, NZ’s Surprise Hold, India’s Onions: Eco Day

(Bloomberg) --

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

  • The global economic slowdown is starting to weigh on the European Union’s east. The region has held up well even as key export destinations including Germany have struggled, but data this week may reveal the nearby weakness is spreading
  • Fed Chairman Jerome Powell is likely to signal again this week that monetary policy is on hold, buttressing the belief that he may steer clear of action through 2020. Meanwhile, President Donald Trump renewed his assault on the Fed, saying it was hurting the economy by not deploying negative rates
  • Synchronized good vibes from Japan and Germany, coupled with a consumer report last week in the U.S., highlight a turning point in sentiment as 2019 draws to a close
  • A new analysis shows the savage impact of almost a decade of austerity on local services in England
  • Trump said the U.S. will increase tariffs on China if the first part of a broader agreement isn’t reached. His administration ratcheted up pressure on the WTO by raising the possibility of blocking approval of its budget
  • New Zealand’s central bank left interest rates unchanged, defying widespread expectations of a cut and sending the local currency soaring
  • The boost to Japan’s economy from shoppers splurging before last month’s sales tax hike was likely smaller than in 2014
  • India’s headline inflation probably breached the central bank’s 4% medium-term threshold last month, but that surge -- driven by high onion prices -- is unlikely to distract monetary policy makers from their focus on growth

To contact the reporter on this story: Enda Curran in hong kong at ecurran8@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Michael S. Arnold

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