More China Tariffs, Fed Keynesians, RBA Political Risk: Eco Day

(Bloomberg) -- Good morning, Asia. Here’s the latest news from Bloomberg Economics:

• The U.S. will begin imposing 25 percent duties on an additional $16 billion in Chinese imports in two weeks, while a Fed survey shows the escalating trade war has prompted about 30 percent of U.S. manufacturers to review their capital spending plans
• Unequal wealth distribution has led economists to question Fed leaders’ love for the New Keynesian model, born of their 1980s experience
• Politics is shaping up as the wild card for Australia’s central bank as it prepares to release economic forecasts that are unlikely to factor in a potential hiring slump
• President Trump’s renewed U.S. sanctions on Iran threaten to penalize even close allies -- this QuickTake shows how the penalties are undermining Iran’s economy
• Has Chinese President Xi Jinping overreached? An economic slowdown, a tanking stock market, and an infant-vaccine scandal are feeding domestic discontent
• Over in Turkey, while desperate measures are in the air, there’s a vacuum at the core of economic policy making
• On the monetary policy front, Thailand is moving closer toward raising near-record low rates as officials meet today; the question facing Philippine policy makers tomorrow is not whether to raise for a third time, but by how much. Meantime, Argentina kept its key rate at 40 percent
• An outflow of European bankers from London is damping prices and rents, according to a BOE policy maker
• In India, Ikea will open its first store Thursday, bringing inexpensive Nordic-inspired furnishings and food to the world’s fastest-growing middle class. Here’s a quick overview of the coming general election in the world’s largest democracy
• The Japanese university at the center of a sexism scandal apologized for “systematic” manipulation of test scores aimed at keeping female students out of medical school
• Faith in humanity restored: A Swiss pensioner who lost 3,500 francs while buying plums at a local market was “overjoyed” to get his money back

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

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

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