Mnuchin in Beijing, Europe's China Crackdown, Fed Calm: Eco Day

(Bloomberg) -- Welcome to Thursday, Europe. Here's news from Bloomberg Economics to help get your day started:

• A U.S. delegation led by Treasury Secretary Steven Mnuchin touched down in Beijing for talks on how to resolve simmering trade tensions with China. Expectations for a major breakthrough appear to be low
• Meanwhile Europe is set to tighten controls over foreign investment, a sign of growing wariness of China
• The Fed gave no indication of plans to veer from their gradual tightening of monetary policy after keeping rates on hold
• At the same time, President Trump's massive fiscal stimulus plans are pushing up bond issuance even as the Fed shrinks its balance sheet
• The world economy showed signs of stabilizing after a recent moderation as manufacturing activity strengthened for the first time this year
• The Czech central bank will likely predict that record-low unemployment and rising salaries won't ignite inflation until 2019, undercutting chances of further rate hikes this year
• In case you missed: the richest corner of Britain is struggling to balance the books

To contact the reporter on this story: Enda Curran in Hong Kong at ecurran8@bloomberg.net.

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Chris Bourke

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