ECB Policy, Lower China Forecasts, Trump’s 2020 Threat: Eco Day
Welcome to Wednesday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:
- French central bank Governor Francois Villeroy de Galhausignaled skepticism over the need for renewed asset purchases by the ECB.
- Meanwhile, incoming ECB Christine Lagarde will be questioned by EU lawmakers today as she seeks their support before taking over from Mario Draghi in November.
- U.K. Chancellor Sajid Javid is expected to say that a decade of austerity is over as he hands out extra money for schools, hospitals and policing in his spending review today.
- Bank of England Governor Mark Carney is set to face tough questions on today after Parliament’s Treasury Committee named John Mann as interim chair.
- There’s a lot of weight on the shoulders of shoppers around the world, and the strain is starting to show.
- Economists are downgrading their forecasts for economic growth in China again, to below a level seen as necessary for the Communist Party to meet its own goals in time for its centenary in 2021.
- Investors are increasingly signaling they don’t buy the inflation-boosting policies central banks are selling, with some even fretting stimulus may do more harm than good.
- President Donald Trump sought to prod China into doing a trade deal before the U.S. presidential election in November 2020, or face even more difficult negotiations during his potential second term.
- Boston Fed chief Eric Rosengren said the U.S. economy remains “relatively strong” despite clearly heightened risks, leaving him unconvinced on the need for an interest-rate cut. Here’s a summary of recent remarks by Fed policy makers.
- The Bank of Canada is expected to open the door further to interest rate cuts at a decision Wednesday, amid worries U.S.-China tensions will curb a relatively robust expansion at home.
- Australia’s economy expanded at the slowest pace since the worldwide recession as a weak housing sector dragged on growth
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