Bloomberg.com — […] Inflation measured by the the Fed’s preferred gauge of price pressures known as the personal consumption expenditure index was 2 percent — at the central bank’s target — in the 12 months through September after running mostly below that threshold since 2012. A separate gauge, the consumer-price index, rose 2.5 percent in October from the year before, according to a Labor Department report Wednesday.

Unemployment has falling to 3.7 percent, the lowest level since 1969, and average hourly earnings are creeping up.

Greenspan said a lack of productivity growth meant “you’re getting into a system now which has no outcome that’s in equilibrium other than inflation and no productivity growth.” […]

Bloomberg.com — An anticipated pickup in U.K. inflation failed to materialize last month as food, clothing and transport prices declined.

Annual consumer-price growth stayed at 2.4 percent in October, the Office for National Statistics said on Wednesday. The figure is below the 2.5 percent predicted by both the Bank of England and economists in a Bloomberg survey.

Food and non-alcoholic drink prices fell 0.2 percent from September, clothing and footwear declined 0.5 percent and the cost of transport equipment and services was down 0.4 percent. These effects were offset by the highest auto-fuel costs in almost four years and a 2.2 percent jump in energy bills after British Gas hiked tariffs for more than 3 million customers.

The pound was little changed after the figures at $1.2963, down 0.1 percent on the day.

BOE policy makers say gradual interest-rate increases will be needed to keep inflation falling toward its 2 percent target, assuming Britain avoids a disorderly Brexit.

Expectations that officials will tighten policy after Britain leaves the European Union next year were reinforced by figures Tuesday showing wages growing at their fastest pace in almost a decade, a sign that home-grown prices pressure are building. […]

Bloomberg.com — Stocks in Asia seesawed Wednesday after a mixed bag of data on China’s economy that followed a topsy-turvy session for U.S. shares. Oil extended its rout, while the pound stabilized after its recent bounce.

Japanese stocks came off their highs of the day, while shares declined in Hong Kong, China and South Korea. Australian equities underperformed, as energy producers weighed. European futures pointed to a weaker open. Earlier, U.S. equities ended lower as optimism over trade talks with China was offset by the plunging crude price, which dropped more than 7 percent Tuesday. The pound maintained gains amid optimism the U.K. and the European Union have agreed upon a draft Brexit divorce deal. Treasury yields were flat and the dollar remained near an 18-month high.

Risk appetite had built Tuesday morning in the U.S. after White House economic adviser Larry Kudlow told CNBC that the U.S. and China are talking on “all levels” of government. That followed an overnight report that China’s Vice Premier Liu He will pave the way for a meeting between the leaders of the two biggest economies later this month. Meanwhile, the Trump administration was said to be holding off for now on imposing new tariffs on automobile imports.

Focus now turns to Federal Reserve Chair Jerome Powell who speaks Wednesday, with some observers expecting him to calm worries about the central bank pushing its interest rate-hike cycle too far. That comes after the latest read on China’s economy, where retail sales missed estimates, though industrial production held up.

Italian assets are back in focus after its government stuck to forecasts for a 2.4 percent budget deficit and 1.5 percent growth target for next year. The move pushes aside attempts by Finance Minister Giovanni Tria to placate the European Commission, which had demanded changes to ease concerns about excessive spending and overly optimistic growth estimates.

Elsewhere, India’s rupee rallied to an almost two-month high and sovereign bonds advanced as the slump in oil prices deepened, easing investor concerns over the oil-importing nation’s current-account deficit. The pound extended gains following a report that key ministers will back U.K. Prime Minister Theresa May’s draft Brexit agreement after months of negotiations.

Bloomberg.com — U.K. wage growth accelerated to a near 10-year high, backing the Bank of England’s view that there is now no spare capacity in the labor market.

Average earnings excluding bonuses rose 3.2 percent in the three months through September from a year earlier, the most since December 2008, the Office for National Statistics said Tuesday. Unemployment unexpectedly rose from a 43-year low to 4.1 percent. […]