Powell Comments, Emerging-Market Concern, U.K. Houses: Eco Day

(Bloomberg) -- Good morning Americas. Here’s news from Bloomberg Economics to help get your Tuesday started:

• Federal Reserve Chairman Jerome Powell said in Zurich Tuesday that financial markets have gotten the message on the U.S. central bank’s plan for gradual interest-rate increases and “should not be surprised” by its actions
• Emerging-market central banks are facing their biggest challenge since the 2013 Fed “taper tantrum” episode
• Rising oil prices still make for a drag on the U.S. economy despite stronger domestic production in recent years, Pacific Investment Management Co. analysts say
  • Meanwhile, U.S. companies are lifting their 2018 investment outlook even as tariffs are expected to boost costs and cause supply disruptions, Institute for Supply Management survey shows
• The ECB is sounding further warnings that a rise in trade protectionism would be damaging to the global economy, and most especially the U.S.
  • In the latest meeting trade mission, Chinese President Xi’s top economic adviser is set to visit the U.S. as trade talks continue
• U.K. home prices plunged the most in almost eight years in April, adding to signs of weakness in Britain’s property market
  • Still, a generation wealth gap means millennials are struggling to get on the property ladder. One think tank is now suggesting Brits should be paid a 10,000 pound ($13,500) “citizen’s inheritance” on their 25th birthday to help them with deposits to buy homes, training costs or cash to start a new business
• The departure of New York Fed chief William Dudley in June will mean a hawk, Kansas City Fed’s Esther George, is at least temporarily on the voting panel
• A big chunk of Mexico’s trade surplus with the U.S. is being captured by exporters in Asia, Bloomberg Economics analysis shows

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net.

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Joanna Ossinger

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