China Plays Bulwark, U.S. Jobs Mirage, Japan's QE Risks: Eco Day

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

  • China’s growing share of the global economy means its familiar role as the bulwark between emerging market pain and developed economies has never been more crucial
  • U.S. economic activity continues to build momentum, but the August jobs data may suggest otherwise -- at least at first glance, argues Carl Riccadonna
  • Momma knows best? The Bank of Japan should gradually reduce its corporate bond purchases because they’re raising the risk of reckless spending by firms, a former BOJ executive director says
  • Meanwhile, after two terms of mixed reform results, Prime Minister Shinzo Abe is vowing to tackle some of Japan’s most chronic challenges in his third
  • Despite wide-ranging reforms put in place after the global financial crisis, central banks are in worse shape to combat another one
  • New York chief John Williams says the Fed shouldn’t hesitate to invert the yield curve if it becomes necessary to achieve the central bank’s targets. Jerome Powell also has a big question to grapple with
  • Pacific peso. Australia’s dollar is finding itself in unusual company, getting sold along with former emerging-market darlings such as the rupiah and rupee. On the rupiah, a question arising now is what constitutes a safe level of public debt for Indonesia
  • Qian Wan digs into Guangdong’s data to see how China is holding up in the trade war
  • Some of America’s most prominent technology companies and retailers made a last-minute push to convince President Trump to reverse course on a plan to impose tariffs on $200 billion in Chinese imports
  • Mario Draghi’s rate hike is under threat from a combination of Italy’s populists and trade tensions, as this chart shows. Still, the consensus of economists is that Draghi will -- just -- manage to raise rates before his terms ends in October 2019
  • Here’s what happened in the world economy this week and what it means

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