Trump Weaponizes Exports, Fed Up or Down, RBA Stimulus: Eco Day

(Bloomberg) -- Welcome to Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to take you into the weekend:

• President Donald Trump’s trade war against China has a new front: Weaponizing American exports. The Trump administration is seeking to choke off Beijing’s access to key technologies by limiting the sale of vital U.S. components to Huawei. Yet he also Thursday held out the prospect that Huawei could be part of a trade deal. Meanwhile, a trade-war scoreboard shows the U.S. and China are in a dead heat
• Increased trade tensions are a concern for the U.S. but Dallas Fed chief Robert Kaplan is undecided if that means the next interest rate move should be a hike or a cut. For Loretta Mester, returning inflation to the Fed’s 2% target requires restraint. Meantime, Fed research shows U.S. rate hikes increase the risk of crises abroad
• Australians should get the full force of two expected rate cuts as lenders’ borrowing costs have eased. Meanwhile, there are at least 80,000 reasons to suggest there’ll be no rapid rebound to the worst housing slump in a generation because of a looming apartment glut
• Companies in the U.S. are paying almost all the costs from Trump’s tariffs on Chinese imports, IMF researchers said in findings that contradict the president’s assertions that China is footing the bill
• Japan’s key inflation gauge ticked higher in April as fuel costs helped support price growth, yet multiple factors are set to weigh on price momentum over the coming months
• India’s economy is set for a major boost if Prime Minister Narendra Modi follows through with key campaign promises
• Perry Warjiyo’s first year at the helm of Indonesia’s central bank has been a baptism of fire. His second isn’t likely to be any calmer
• Treasury Secretary Steven Mnuchin said he met with Vietnamese officials after the U.S. indicated earlier this month that the country was under scrutiny for possibly manipulating its currency
• Here’s our weekly review of the world economy and lessons learned and a look at Asia’s week ahead and analysis of likely implications

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