Tariff Hike On, Fed Cut Prospect, Aussie's RBA Wobbles: Eco Day

(Bloomberg) -- Welcome to Tuesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• President Donald Trump’s top trade negotiator said the U.S. plans to raise tariffs on Chinese goods on Friday, accusing Beijing of backpedaling on commitments. Tom Orlik explores what the threat means for the trade talks
• Even if just bluster, Trump’s threat to escalate was enough to undo some of Fed chief Jerome Powell’s success in pulling traders back from betting on interest-rate cuts. Meanwhile, the Fed is further amplifying its warnings about the perils of risky corporate debt
• Overnight implied volatility in the Aussie dollar is soaring ahead of the central bank’s meeting today as traders boost odds of a rate cut
• New Zealand’s central bank may cut interest rates to fresh historic lows tomorrow and its Southeast Asian peers are taking a hard look at cuts, with Malaysia possibly moving as soon as today
• Indonesia plans to open up more sectors to foreign investors and reboot its stringent labor laws to become a regional manufacturing powerhouse rivaling Germany and South Korea
• Bank of Canada Governor Stephen Poloz said he’s confident housing will return to growth later this year
• The ECB’s outgoing chief economist has some parting words for his colleagues on the Governing Council: be careful when planning your future strategy
• India’s goods and services tax revenue touched the highest ever in April, but the spurt in collections is far from becoming the norm just yet. Over the border, Pakistan moved a step closer to concluding a financial aid package with the IMF

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