Few Lessons for U.K., German Pain, RBNZ's Steep Cut: Eco Day

(Bloomberg) --

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

• There’s little historical precedent to help officials tailor a response to a potential no-deal Brexit
• German industrial production fell more than expected in June, further aggravating the country’s manufacturing slump
• Battle lines. Presidents Donald Trump and Xi Jinping are making big bets that could backfire; Trump’s China problem is that a weak yuan is a strong weapon, and in the meantime, China reassures foreign firms that the yuan won’t keep falling
• Fed talk. St. Louis Fed chief James Bullard is sticking to his call for one more interest-rate cut in 2019 and said there’s no need to exaggerate responses to the tit-for-tat trade war
• Cuts elsewhere. Policy makers in New Zealand and India surprised Wednesday with bigger-than-expected interest-rate cuts; central bankers in the Philippines also look set to ease this week while Thailand probably will hold policy
• War chest. Emerging Asia has built up its foreign reserves over two decades, but there are real limits to that tool in this downturn

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