Volcker Praises Powell, ECB Decision, German Sentiment: Eco Day

(Bloomberg) -- Good morning Americas. Here’s the latest news from Bloomberg Economics to help get your Thursday started.

• Legendary former central banker Paul Volcker praised Jerome Powell as the current Federal Reserve chairman faces fire from President Donald Trump for raising interest rates.

• The European Central Bank is on the verge of announcing its latest policy decision. President Mario Draghi may be reflecting on the difference a year can make as he and his colleagues discuss a litany of risks facing the euro-zone economy.
• Norway’s central bank kept its key interest rate unchanged and reiterated its intention to tighten again early next year as policy makers proceed cautiously in unwinding the record stimulus unleashed over the past years.
  • Meanwhile, in Turkey, which also sets rates today, geopolitical storm clouds are no longer gathering over monetary policy.
• German business sentiment has deteriorated amid signs economic growth ground to a temporary halt and as risks surrounding a U.S.-China trade spat and a disorderly Brexit increased.
• The Bank of Russia’s plans for interest rates may have to wait for an event a few weeks and thousands of miles distant from Friday’s board meeting -- the U.S. midterm elections.
• The current global equities rout isn’t the start of a big bear market, according to Joachim Fels, global economic adviser at Pacific Investment Management Co.

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Joanna Ossinger

©2018 Bloomberg L.P.