Trade Balance Caveat, Oil Spike, Central Banks’ Limits: Eco Day

(Bloomberg) --

Welcome to Wednesday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

• New data shows President Donald Trump may be poised to deliver on one of his biggest economic promises: Reducing the annual U.S. trade deficit with China and the world. Scratch the surface, though, and that accomplishment comes with plenty of caveats attached
• An oil price spike from tensions between the U.S. and Iran is unlikely to lessen the vice-like grip that lowflation has on the world economy
• Europe’s manufacturers headed into the new year on a downbeat note, with expectations for both export orders and employment weakening at the end of a rough 2019
• Chilean inflation accelerated less than expected in December, with price-growth hitting the central bank target after a wave of social unrest disrupted supply chains
• While recession fears aren’t gripping financial markets like they were a few months ago, Canadian households remain worried the nation’s economy is headed for a downturn
• Outgoing Bank of England Governor Mark Carney said central banks globally are getting close to running out of tools should they need to tackle another serious economic downturn

To contact the reporter on this story: Zoe Schneeweiss in London at zschneeweiss@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Paul Gordon

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