Fed Cut Opposition, China Stalls, Aussie Shock Absorber: Eco Day

(Bloomberg) -- Welcome to Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to take you through to the weekend:

• Three Fed policy makers voiced resistance to the notion the U.S. economy needs lower interest rates, and a fourth said he wanted to avoid taking further action “unless we have to,” foreshadowing a sharp debate with officials who want to cut again
• China’s high-profile campaign to funnel more credit to private companies has stalled, according to a number of private surveys and reports. China will skip a chance to cut borrowing costs in the coming days, as it lets a recent overhaul of the interest-rate system bed in
• As Australia’s central bank chief Philip Lowe jets off to Jackson Hole to discuss a global economy increasingly buffeted by presidential tweets, he’ll want to have his messaging right to avoid upsetting one of the few metrics that are moving his way
• Every August, investors around the world obsess over what’s going on in a tiny Wyoming resort on the edge of the magnificent Teton mountain range. They have good reason to do so
• Harvard University economist Lawrence Summers warned central bankers that they are staring at “black hole monetary economics” where small changes in interest rates and even more aggressive strategies do little to solve demand shortfalls
• Germany’s central bank doesn’t see a need for fiscal stimulus at this time, even though it expects the economy to shrink again, according to two people familiar with the Bundesbank’s stance
• Bigger cracks are forming across America’s manufacturing industry as lackluster global demand and persistent trade tensions led to the first contraction in U.S. factory activity since September 2009
• Bank Indonesia shifted its policy stance to one that pre-emptively supports growth. This suggests a willingness to cut rates more aggressively, writes Tamara Mast Henderson
• The unexpected decline in Argentina’s June economic activity suggests that the economy remained in a recession in the second quarter, writes Adriana Dupita
• The slide in India benchmark 10-year government bonds yields since April has room to run, according to a new forecast model developed by Bloomberg Economics, writes Abhishek Gupta
• Much has been made of how businesses are suffering from U.S. tariffs. But companies can’t go to the polls in November 2020 and punch a ballot. American women will, however, and the trade war may provide extra motivation, writes Olivia Konotey-Ahulu in the latest Terms of Trade

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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