Bad Economic News, Manufacturing Risk, China Weakness: Eco Day

(Bloomberg) --

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

• Another day and another round of bad news is highlighting the risk that the global economy is headed for a serious downturn
• In the U.S., President Trump has been boasting about creating manufacturing jobs in states key to his re-election, but an emerging recession in the sector threatens to reverse that trend and imperil his message
• China posted the weakest industrial output growth since 2002 and slumping retail sales in July, as a cyclical slowdown and trade tensions add to the case to roll out more stimulus. The weakness in July is just a taste of worse to come, writes Chang Shu and David Qu
• Germany’s economy shrank in the second quarter, piling pressure on Chancellor Angela Merkel to unleash fiscal stimulus as manufacturers reel from a U.S.-China trade war.
• At the same time, the European Union’s eastern economies are withstanding the brunt of global headwinds
• As the trade spat continues, Trump bowed to pressure, delaying the imposition of new tariffs on a variety of products until December. Tom Orlik explains why that makes little difference to the broader dispute
  • Meantime, Chinese officials are sticking to their plan of visiting Washington in September for face-to-face meetings, signaling that talks remain on track for now
• President Mauricio Macri is set to unveil a plan to ease the economic pain of Argentines struggling with unemployment and inflation. Here’s what the latest rout looks like for small business owners in Argentina

To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Zoe Schneeweiss

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