Tariff Rollback, U.S. Wealth Tax, Euro-Area Warning: Eco Day

(Bloomberg) --

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

• China and the U.S. have agreed to roll back tariffs on each other’s goods in phases as they work toward a deal between the two sides, a Ministry of Commerce spokesman said
  • China sentenced three nationals to maximum punishments for smuggling fentanyl to the U.S., in one of its highest-profile moves yet against the illicit flow of opioids that Trump has made a bone of contention in broader trade talks
• The 2020 U.S. presidential election may be a year away but one policy idea is already stirring fierce debate: a big-time tax on the richest Americans. This week’s Stephanomics podcast has the details on why Bernie Sanders and Elizabeth Warren want to implement a wealth tax, and how it might work
• The European Commission cut its euro-area growth and inflation outlook amid global trade tensions and policy uncertainty, warning that the bloc’s economic resilience won’t last forever
• The Bank of England kept rates unchanged, though two policy makers voted for a cut
• When Christine Lagarde tries to work out why the European Central Bank can’t hit its inflation goal, she might need to look at the measure itself
  • ECB Governing Council member Robert Holzmann signaled that monetary policy has reached its limit, and argued it’s time for fiscal stimulus to step in

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