Tougher Path to Euro, Trade Tensions, World Cup Drag: Eco Day

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

• Eastern European economies are finding a tougher path to adopt the euro, with Bulgaria the latest to accept stricter conditions than in the past
• Lagging pay. British minorities are narrowing the gap in education but not yet being rewarded with bigger paychecks
• Tariff talk. Fed chair Jerome Powell sounded a warning that protectionism threatens economic growth and perhaps wage increases, while noting that interest-rate hikes will stay on a gradual path for now
• Output boom. Factories are chugging along in the U.S., where manufacturing output rose in June by the most in four months
• Debt owners. China is still the biggest banker for the U.S., judging by foreign holdings of Treasuries
• Risky business. Vietnam, among the most export-reliant economies in the world, is finding ways to insulate itself from U.S.-China trade tensions; meanwhile, South Korea has marked down its growth outlook in the name of those trade risks
• Silver lining. Made in China 2025 is more of a business opportunity than strategic threat to Japan, Bloomberg Economics explains
• Party spoiler. World Cup fever actually may have been a drag for consumer spending in Russia

To contact the reporter on this story: Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Henry Hoenig

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