Italy’s Spending Plans, Brexit Woes, Eurozone's Bumps: Eco Day

(Bloomberg) -- Happy Wednesday, Europe. Here’s the latest news from Bloomberg Economics:

  • Italy’s populists are insisting their plans to ramp up government spending will shield the nation from recession, brushing off warnings that their confrontational approach may already be hurting the economy
  • Brexit woes: British businesses are increasingly nervous about Brexit deal prospects. Optimism slumped in October to the lowest this year, with confidence falling in almost all parts of the country, a Lloyds Bank survey showed
  • Bumpy ride: The euro-area economy’s bumpy ride in 2018 may not be over just yet, with risks both near and far to keep Mario Draghi on edge. In Germany, inflation accelerated to the fastest pace since 2012, even after economic growth probably ground to a temporary halt
  • Tardy progress: The European Central Bank won’t make much progress raising interest rates because it’ll tighten just as the U.S. economy slows, predicts Pacific Investment Management Co.’s Andrew Bosomworth
  • Stay pat: The Bank of Japan stayed the course on monetary stimulus while confirming in updated price forecasts that it won’t meet its inflation target for years to come
  • Stern test: China’s attempt to break free from the debt-financed stimulus of the past is being stress tested by U.S. President Donald Trump, while the question of how much further its currency has to fall will depend on capital-outflow control. Meantime, Tom Orlik explores China’s fine balance between honoring its commitments and enjoying the rights of WTO membership
  • Growing rift: India has cited a never-used legal provision in trying to resolve disagreements with the nation’s central bank, which could lead to the government directing the monetary authority to do its bidding if invoked, people with knowledge of the matter said
  • Don’t miss the next part of Stephanie Flanders’ New Economy Podcast

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