Italy Risks Grow, Javid’s Wage Gift, German Industry: Eco Day

(Bloomberg) --

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

• Italy’s economic outlook is growing dimmer, adding pressure on the government to deliver on its tricky promise of an expansionary budget while setting aside billions to avoid a planned increase in sales-tax
• German industrial production unexpectedly improved in August after two months of decline, a development that will do little to alleviate concerns about intensifying trade tensions and waning business confidence
• U.K. Chancellor Sajid Javid made his pay rise for low earners the centerpiece of his policy plans last week. In reality, the increase might not be as glitzy as it seems and small firms warn it could lead to job losses
• Japanese households increased spending for a ninth month in August without splurging ahead of a sales tax hike that took effect this month
• The Bank of Japan will leave its negative interest rate unchanged unless it is completely convinced a deterioration of the global economy will spark stock market jitters and a jump in the yen, says a former executive director of the central bank
• China’s economy is probably expanding at a pace close to what official figures show, though growth has likely been more volatile than the numbers indicate, Federal Reserve researchers said
• Central bankers have given a thumbs up to their own actions over the past decade, according to a Bank for International Settlements survey

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, Chris Bourke

©2019 Bloomberg L.P.