Fed Rate Path, ECB Inflation Comments, Italy's Budget: Eco Day

(Bloomberg) -- Welcome to Tuesday, Americas. Here’s the latest news from Bloomberg Economics:

  • The Federal Reserve will raise interest rates this week and continue its quarterly drumbeat of 25-basis-point increases straight through July 2019, according to a Bloomberg survey
  • Trump and his South Korean counterpart signed a renegotiated free-trade agreement, marking the first time the U.S. president has finalized a major trade deal since entering office. Meantime, at the UN, leaders from Latin America, Africa and Asia expressed concerns about rising tensions between the world’s two largest economies
  • Tom Orlik weighs who has the most leverage as China and the U.S. dig in for what could be a long and bruising trade war
  • The European Union, China and Russia backed a mechanism to allow “legitimate” business to continue with Iran, a plan aimed at sidestepping American sanctions and allowing international trade to continue
  • European Central Bank policy maker Peter Praet said he doesn’t believe President Mario Draghi intended to send a new signal when he said the pickup in underlying euro-area inflation is “relatively vigorous
    • Draghi’s comments have led economists to wonder if he’s building a case to raise interest rates late next year
  • Unwinding central bank quantitative easing shouldn’t have a material impact on the economy, according to Bank of England policy maker Gertjan Vlieghe
  • Italy’s government may be headed for a compromise on the budget -- we’re about to get some clarity on it, but it’s time to revisit how we got there
  • The Bank of Spain expects economic growth to slow in the coming years after a stellar run as the Socialist government prepares for a contentious budget vote
  • Serbian lawmakers approved two women to become new vice governors at the central bank, creating a gender ratio unique in Europe in a team that sets the Balkan nation’s monetary policy
  • India and Pakistan’s bitter rivalry is costing them $35 billion worth of annual trade, the World Bank said in a report
  • Indonesia is ramping up efforts to shield the rupiah from a global rout that’s rattling emerging markets

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