Hawkish BOE, Bundesbank Role, Christmas Ornaments: Eco Day

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Welcome to Monday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the week:

• Investors are almost fully pricing in a 15-basis point increase in the benchmark lending rate when the Bank of England meets Nov. 4, while economists increasingly share that view
• Germany’s probable next coalition is battling over the future role of the Bundesbank in Europe
• Almost half of U.K. companies expect to increase prices, a record high, adding to inflation concerns that will weigh on the BOE meeting this week, according to a survey by Lloyds Banking Group Plc
• With inflation in developing nations now exceeding expectations by the most in more than a decade, assets backed by policy makers who are getting ahead of price pressures are enticing fund managers more than ever
• Manufacturing activity in Asia outside China firmed as loosened movement restrictions allowed factories to catch up ahead of the crucial year-end holiday season
• Factories in Chinese city of Yiwu, the world’s biggest hub for the manufacture of Christmas items, are being hit by a shortage of raw materials that’s raising their production costs, which could make Christmas ornaments more expensive this year
• As talks among world leaders get underway at the UN’s COP26 climate summit in Glasgow, it’s clear that a rapid reduction in carbon emissions is vital to keep temperatures below 2 degrees Celsius and prevent the worst consequences of climate change. Bloomberg Economics takes a look
• Finally, here’s what to look out for in the world economy this week: The Federal Reserve and global counterparts are poised to take center stage in three days of monetary action that will reveal if they share the alarm about surging inflation that has gripped investors

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