Trump Olive Branch to China and Iran, ECB’s Credibility: Eco Day

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

• U.S. President Donald Trump said China wants to make a deal as he praised comments by the country’s chief negotiator for trade. He also says he is not “at this moment” considering fresh tariffs on imported autos and parts from Japan
• The president meanwhile also signaled he’s open to making a dramatic shift in U.S. policy toward Iran
• ECB policy makers will need to muster a broad consensus in favor of more monetary stimulus in September to make it credible, Governing Council member Peter Kazimir said
• Fallout from the trade war is still reverberating, with South Koreans at their gloomiest in more than two and a half years
• The Indian central bank’s unprecedented payout to Prime Minister Narendra Modi’s government is almost as large as the G-20 stimulus during the global financial crisis
• The IMF’s record loan to Argentina was supposed to turn the page on a troubled history. It’s looking more like a case of déjà vu
• Taxing the wealthy is becoming the latest sign of how Chancellor Angela Merkel’s already-frail coalition is drifting apart, adding to the political turbulence as Germany teeters on the brink of recession

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