Trade Optimism, Abenomics’ Lesson for ECB, Turkey CPI: Eco Day

(Bloomberg) --

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

• Commerce Secretary Wilbur Ross expressed optimism the U.S. would reach a “Phase One” trade deal with China this month and said licenses would be coming “very shortly” for American companies to sell components to Huawei Technologies Co.
  • The Trump administration may not need to put tariffs on imported automobiles later this month after holding “good conversations” with automakers in the European Union, Japan and elsewhere, Ross also said.
• When Mario Draghi ended his term as European Central Bank president last week with a call for government policies to be “mutually aligned” with those of his institution, the message came with an unspoken caveat -- it might not be enough.
  • The Christine Lagarde-era at the ECB is underway and the new president gets her first chance to frame her outlook for the economy and monetary policy publicly on Monday.
• The Bank of England’s Monetary Policy Report this week will unveil more than just a new name for its predictions.
  • The early U.K. election in December is creating confusion in the Treasury’s search for a new BOE governor.
• As the world’s central banks loosen monetary policy to support growth and rekindle inflation, central banks in eastern Europe reckon the best option for now is to do nothing.
• Statistical distortions that have pushed Turkey’s inflation to levels last seen over two years ago are starting to wear off
• Swiss National Bank chief President Thomas Jordan reiterated that he sees further room to cut rates and warned the franc would rise quickly if the central bank abandoned its negative rates and stopped interventions in foreign exchange markets
• Australia’s monetary policy easing has driven interest rates down to levels where they could be doing more harm than good for the economy.

To contact the reporter on this story: Jiyeun Lee in Hong Kong at jlee1029@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Jeffrey Black

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