‘Freak Out’ Factor, China Cools, Yellen on Default Risk: Eco Day

(Bloomberg) -- Welcome to Monday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the week.

• Economists are still expecting an historically strong U.S. recovery
• China’s economy continued its stable pace of recovery in July, though there were some some signs of weakness
• Secretary Janet Yellen said the Treasury Department will begin special steps next week to avoid breaching the U.S. debt limit, urging lawmakers to act “as soon as possible” to avert a payment default
• The U.S. and China barreled into their first high-level talks since March trading sanctions and rhetorical barbs, raising the stakes. Meantime, here’s how China is trying to fight back against sanctions
• Policy hawks at the Fed are setting their sights on scaling back its massive intervention in the mortgage market as home prices soar
• Fed officials to meet, GDP data coming globally: eco week shead
• A slowdown is expected in South Korea’s second-quarter GDP, Bloomberg Economics writes in this look at the coming week
• The world’s fifth-largest economy is eying a 6% inflation shock
• Extreme weather is slamming crops across the globe, bringing with it the threat of further food inflation
• Environment ministers from the G-20 nations were unable to reach full agreement on key climate goals
• Philippine President Rodrigo Duterte is poised to capitalize on his popularity with voters to push for pandemic recovery measures
• Sri Lanka plans to repay a $1 billion bond by the Tuesday deadline
• Not even 50% inflation will make Argentina boost interest rates
• China announced a broad set of reforms for private education that it says has been “hijacked by capital”

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