Dudley Bombshell, Dollar Recession Risk, Trade War 2.0: Eco Day

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

• A former top Fed official suggested it reject interest-rate cuts that would help Donald Trump’s 2020 reelection, drawing swift criticism
• The dollar has been ascendant in 2019 and forecasts for a U.S. recession are growing louder. If the greenback’s strength keeps up and the economy does shrink, that could make it harder to recover
• The global economy could be hit by a second wave of damage from the U.S.-China trade war -- and it will be much more severe than the first, Indonesian Finance Minister Sri Mulyani Indrawati said
• Perhaps nobody was more surprised to hear that China had called the Trump administration to restart talks than Beijing itself. Meantime, pressure on China to ease monetary policy is increasing, based on July data captured in our dashboard, writes David Qu
• Asian governments are trickling out fiscal stimulus amid a deepening export slump, aiding central bank efforts to shore up their economies
• Weakness in India’s investment and consumption activity worsened in July, with economic growth showing little signs of recovery from a five-year low. Fortunately, the RBI’s record $24.4 billion payout to the government will give Indian authorities more fiscal options
• Singapore’s housing market isn’t turning out to be the beneficiary many may have thought from Hong Kong’s increasingly fraught protests. Instead, investors are looking to cheaper property markets like Malaysia, Thailand and Taiwan
• The Bank of Israel may have to show its cards on the currency this week or risk the market calling its bluff
• Here’s a look at what’s likely to happen in the leadup to 2047, when the China-U.K. agreement on Hong Kong of “one country, two systems” comes to an end
• After years of negative interest rates, Europe’s banks may soon need either to change their business model or shrink, according to the head of the financial watchdog in Denmark
• In Thailand, the ruling coalition and opposition lawmakers don’t agree on much. Yet within both camps there’s growing support for legalizing same-sex unions

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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