Asia's EM Pain, Tariffs Drag U.S. Growth, India Spirits: Eco Day

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

• The turmoil that’s rocked emerging markets this year is spreading to main street, dampening growth prospects for some of Asia’s fastest-growing economies
• If Jerome Powell has a worry list, he’s made it clear a hot labor market kicking off runaway inflation isn’t item No. 1. The Fed chairman also played down the signal sent by a flatter yield curve and said the risk of recession was not especially high
• Fresh data on the U.S. economy show President Trump’s escalating trade war is shaping up as a clear drag on growth this quarter
• India is beginning to feel the heat of global trade tensions and tighter monetary conditions, as rising oil prices and waning consumption threaten to muzzle animal spirits
• Bank of Canada chief Stephen Poloz reckons digital technology is adding to the long list of things that are making it difficult to assess the true state of the economy
• Italy’s government set next year’s budget deficit target at 2.4 percent of output, after the ruling populist parties pressured Finance Minister Giovanni Tria into giving way
• Oil’s surge toward $100 is softening the blow of sanctions on Putin’s Russia. Meantime, Congress is unlikely to pass any new sanctions on the nation, including proposals that would affect its sovereign debt and energy projects, until after November elections
• Here’s what happened in the world economy this week and why it matters

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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