May's Terrible Day, What's in a Truce, Argentina's Win: Eco Day

(Bloomberg) -- Welcome to Wednesday, Europe. Here's the latest news and analysis from Bloomberg Economics to help get your day started:

• After a dramatic day in the House of Commons Tuesday, Theresa May has to face Parliament with even less power ahead of a key vote next week
• Italy's populist government has a new problem brewing as it faces up to the risk that it could soon be dealing with the country's first recession in five years
• A hefty plunge in inflation is likely to calm talk that Polish borrowing costs should be lifted from their record low, at least for the time being
• Fragile detente. China broke its silence on last weekend's meeting with the U.S. on trade, striking a happy tone, but there are several lingering questions on what actually was agreed and how much some tweets might be bluster over substance
• New York Fed chief John Williams struck an upbeat tone on the state of the U.S. economy; meanwhile, that fresh inverted yield curve threat still threatens Fed plans
• Brighter days. Argentina cleared a key hurdle to an IMF deal as inflation expectations improved for a second month, allowing the central bank to lower the world's highest interest rates
• Australians' reluctance to spend in the midst of a property slump is dragging on economic growth, with quarterly GDP the slowest in two years
• Manila's Grinch. Inflation finally slowed in the Philippines, but the soaring price growth is still putting a damper on Christmas festivities
• RBI preview. Take a look at what'll play into the Indian central bank's decision later on Wednesday
• Lunchtime read. Here's a QuickTake on why China's ‘have another baby' pleas could be too late

To contact the reporter on this story: Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Chris Bourke

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