Bad Economic News, Manufacturing Risk, China Weakness: Eco Day

(Bloomberg) --

Welcome to Wednesday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• Another day and another round of bad news is highlighting the risk that the global economy is headed for a serious downturn
• In the U.S., President Trump has been boasting about creating manufacturing jobs in states key to his re-election, but an emerging recession in the sector threatens to reverse that trend and imperil his message
• China posted the weakest industrial output growth since 2002 and slumping retail sales in July, as a cyclical slowdown and trade tensions add to the case to roll out more stimulus. The weakness in July is just a taste of worse to come, writes Chang Shu and David Qu
• Germany’s economy shrank in the second quarter, piling pressure on Chancellor Angela Merkel to unleash fiscal stimulus as manufacturers reel from a U.S.-China trade war.
• At the same time, the European Union’s eastern economies are withstanding the brunt of global headwinds
• As the trade spat continues, Trump bowed to pressure, delaying the imposition of new tariffs on a variety of products until December. Tom Orlik explains why that makes little difference to the broader dispute
  • Meantime, Chinese officials are sticking to their plan of visiting Washington in September for face-to-face meetings, signaling that talks remain on track for now
• President Mauricio Macri is set to unveil a plan to ease the economic pain of Argentines struggling with unemployment and inflation. Here’s what the latest rout looks like for small business owners in Argentina

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