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

  • Bank of England policy makers may be losing faith in their own call for higher interest rates
  • Also running. The Dutch government is campaigning for former finance minister Jeroen Dijsselbloem to be the next managing director of the International Monetary Fund, according to a person familiar with the matter
  • Under pressure. Ukraine will probably cut Europe’s-second highest benchmark interest rate amid slowing inflation and expectations that parliamentary elections will revive a deal with the IMF
  • Little to show. Slow progress on key initial demands from Presidents Donald Trump and Xi Jinping is raising doubts about whether the U.S. and China will actually return to the negotiating table to overcome their much deeper differences. The imbalances that lie behind trade tensions are now concentrated in rich countries, and tariffs aren’t doing much to fix them, the IMF said
  • Surprise! The Bank of Korea unexpectedly cut its benchmark interest rate as it slashed economic growth and inflation forecasts
  • What next? The Fed and other leading central banks are declaring the peak in global rates has been reached and are readying to start the march down. Indeed, this map shows the only way really is down
  • Further easing. Despite the upward surprises in June’s activity data, Bloomberg Economics’ dashboard for the People’s Bank of China still points to the need for looser monetary policy. Elsewhere, Indonesia is poised to cut interest rates for the first time in two years as the prospect of the U.S. unwinding some of its policy tightening bolsters the case for an aggressive easing cycle
  • Jobs boom. Employment jumped and the labor force swelled in Australia’s western mining heartland, offsetting job losses in every other state, suggesting forecasts of a resource investment revival might be coming to pass
  • Take note. The yellow-vest protests that shook France last year may be over, but the forces of political and economic anger continue to ripple around the world. Stephanie Flanders visits the City of Lights in her latest podcast

To contact the reporter on this story: Anirban Nag in Mumbai at anag8@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Karthikeyan Sundaram, Tuhin Kar

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