Fed Meeting, Midterm Impact, EU's Message to Italy: Eco Day

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

  • Federal Reserve policy makers meeting in Washington today will weigh how to describe a moderation in U.S. economic growth as they reinforce expectations for a fourth 2018 hike next month
  • Meanwhile, this week’s midterms are likely to have subtle but not insignificant effects on the U.S. economy in the months ahead.
  • The European Union has put numbers on its frustration with Italy, saying Thursday that economic growth next year will be weaker than the government targets, and the nation’s budget deficit will move dangerously close to the EU limit of 3 percent.
  • There could be more Italian friction ahead, as the European Central Bank reviews its capital key, a measure of economic heft that determines how its bond-buying program is divided.
    • Bloomberg Economics calculates that the changes could mean purchases of Italian bonds drop by 750 million euros next year, with those of Germany climbing by 1 billion euros.
  • The ECB is also under the microscope this week, after policy makers appeared to bury their diversity agenda as they made a key appointment.
  • The U.K.’s housing market woes are continuing, with a key gauge falling to the weakest since just after the financial crisis.
  • Chinese export growth accelerated in October as companies rushed to make shipments before President Donald Trump’s plans to increase tariff rates kick in.
  • A record decline in Japan’s core machine orders offers the latest evidence that trade tensions and cooling global demand are taking a toll.

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