Trade Tensions Escalate, Draghi Patience, Jobs Puzzle: Eco Day

(Bloomberg) -- Welcome to Tuesday, Americas. Here’s news from Bloomberg Economics to help get your day started:

• Trade tensions between the world’s two biggest economies are intensifying, with China vowing to retaliate "forcefully" against President Trump’s threatened tariffs on another $200 billion worth in Chinese imports
  • Here’s what economists have to say
• Mario Draghi promised that the European Central Bank will take its time to lift interest rates
  • His comments are proving a powerful force when it comes to Swiss monetary policy too
• The Bank of Japan should accept it’s making no headway in spurring 2 percent inflation and start normalizing policy, a former BOJ official says
• Fed Chairman Jerome Powell however seems to be hoping that the U.S. economy has grown a bit like Japan in one key respect: the jobs market
• Meanwhile, ex-U.S. Treasury Secretary Lawrence Summers warns developed countries are poorly equipped to face another recession
  • Brazil’s central bank can’t sustain its campaign to combat currency volatility until general elections in October. Over in Thailand, political risk is making it more difficult to assess economic momentum. In nearby Vietnam, discontent is building and spilling onto the streets
• Saudi Arabia’s plan to halt oil’s rally could hurt its economy

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

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

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