Powell Opens Door to Cut, Central Banks Poised to Act: Eco Day

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

• Federal Reserve Chairman Jerome Powell signaled an openness to cut interest rates if necessary, pledging to keep a close watch on fallout from a deepening set of disputes between the U.S. and its largest trading partners
• Central banks are resuming their first-responder role as the world economy runs into trouble even if they lack the firepower they once had at their disposal
• Donald Trump is in London this week partly to advance a potential future trade deal with the U.K. that he promised will be concluded quickly after the country leaves the EU. Here are some reasons why that may be hard to do
• China issued a travel advisory on the U.S. through the end of the year in the latest salvo of a trade battle that appears to be escalating by the day
• Australia’s central bank chief strongly suggested he could follow up Tuesday’s interest-rate cut with another reduction
• Economists see Trump’s tariffs on Mexican goods denting growth and adding to headwinds that will prompt both countries’ central banks to cut interest rates in the next year

©2019 Bloomberg L.P.