Five Things You Need to Know to Start Your Day: Europe
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Good morning. Some Fed officials eye broadening disinflation, the EU may penalize Chinese firms over Russia and the BOE says capital rules aren’t to blame for low bank values. Here’s what people are talking about.
The US’s CPI report due later Tuesday is expected to show the first reading below 3% for year-over-year headline inflation since March 2021, supporting the disinflation narrative that has boosted stocks in recent months. Still, a decline in inflation may not be enough for some Fed officials, who want slowing to broaden more meaningfully to housing and services before giving the green light to interest-rate cuts. Citi also warned that rate hikes could follow a very brief easing cycle.