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

  • Jens Weidmann’s decision to quit as Bundesbank president offers a unique opportunity to reshape the inflation-fighting institution. Weidmann’s greatest impact at the ECB may be felt at the Governing Council’s meeting in December, Bloomberg Economics says
  • Soaring energy prices are exacerbating divisions in the European Union as national leaders brace for heated talks about how to protect the most vulnerable
  • Ukraine is expected to keep a promise to leave borrowing costs untouched, though remarks by the International Monetary Fund have some wondering whether a fifth rate hike of 2021 could yet materialize
  • Driven by President Recep Tayyip Erdogan’s unorthodox monetary ideas, Turkey’s central bank chief is expected to deliver another interest-rate cut -- perhaps as soon as Thursday -- despite rising inflationary pressures and a lira slumping to record lows
  • China still has policy options to cushion an economic slowdown, the director of the International Monetary Fund’s Asia and Pacific Department said
  • The U.K. sealed a trade deal with New Zealand, its latest post-Brexit accord as it seeks new economic allies after leaving the European Union
  • The U.S. economy expanded at a “modest to moderate rate” while some districts noted growth slowed, citing supply constraints and concerns over the delta variant, the Federal Reserve said
  • Russia is increasingly concerned that surging gas prices risk demand destruction in its biggest export market
  • The Reserve Bank of Australia is facing pressure to launch the type of formal review that has already been conducted at central banks from Washington to Wellington
  • The next recession could come courtesy of the Fed, Stephanie Flanders says in her weekly Podcast

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