Policy Rates Diverge, Asia PMIs Heal, Australia Reopens: Eco Day

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Welcome to Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help you start the day and send you into the weekend:

• Denmark cut its key interest rate to defend its currency peg, though the global picture on policy action remains mixed. The Czech central bank is pledging further hikes after its boldest move in 24 years, and Mexico and Colombia, which boosted interest rates Thursday, suggest more increases are to come  
• Asia’s factories saw a September rebound as delta variant-related restrictions were eased. In other shipments data, Korea’s export growth slowed in September on holiday effects and lingering global supply-chain challenges, while keeping a double-digit, year-on-year gain
• U.K. directors are the least optimistic about the economy since the height of the winter lockdown after confidence “fell off a cliff” in September, a business lobby warned
• Sentiment among big Japanese businesses unexpectedly improved for a fifth straight quarter, suggesting pandemic recovery might be faster under the nation’s incoming prime minister
• Australian home prices rose again in September to keep up the property boom, with the end of lockdowns in sight. The country also announced Friday an accelerated timeline to open up borders, with bans on international travel set to be lifted in November -- a month ahead of schedule
• In another step to boost international travel and heal the airline industry, Group of Seven ministers agreed in a virtual summit Thursday to work toward common standards rather than a patchwork of rules and restrictions
• U.S. Treasuries, traditionally a safe haven in rocky times for the global economy, appear to be losing favor while Germany and Japan are still hot picks, according to an analysis by the Institute of International Finance

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