Abe Rides Upswing, Aussie Shock Risk, Trade Flow Threat: Eco Day

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

  • Prime Minister Shinzo Abe goes into a leadership vote bolstered by Japan’s longest stretch of economic growth in a generation. His central bank’s massive monetary stimulus is set to drive Abenomics well into 2019
  • Australia’s real exchange rate could surge 6 percent in the event of an all-out global trade war, Reserve Bank research found
  • New Zealand’s economy expanded at the fastest pace in two years in the second quarter, led by farm production
  • Escalation of the U.S.-China trade war means stronger headwinds for exports and growth in Southeast Asia. But a secondary blow from capital flows may pack a much harder punch, writes Tamara Henderson
  • Argentina’s economy shrank the most in four years as the central bank repeatedly ratcheted up interest rates to stem a plunge in the currency
  • Brazil’s central bank kept its key rate at an all-time low but cautioned of growing risks to inflation
  • European Central Bank President Mario Draghi called for a euro-area fund to complement monetary policy, renewing his plea to strengthen the currency bloc
  • President Trump plans to nominate Nellie Liang, a former Federal Reserve economist, to the central bank’s Board of Governors

©2018 Bloomberg L.P.