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Beijing Hits Back, Next Fed Cut, Hong Kong Status Risk: Eco Day

Beijing Hits Back, Next Fed Cut, Hong Kong Status Risk: Eco Day

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

  • China called looming U.S. tariffs a violation of accords reached by Presidents Donald Trump and Xi Jinping, vowing retaliation. Trump suggested Xi meet directly with protesters in Hong Kong, saying it would lead to a “happy and enlightened ending
  • Economists remain confident Fed chief Jerome Powell will cut interest rates again next month as insurance against a global slowdown. Meantime, one of the Fed’s most dovish members said market turmoil and a slowing global economy don’t warrant taking action before the September meeting
  • Prolonged civil unrest, or creeping erosion of high standards of governance, would present a risk to Hong Kong’s status as a global financial center, writes Qian Wan
  • There are weeks when the markets lead the fretting, and those when numbers dictate. And then there are weeks -- like this one -- when markets, data, and politics all pointed to a darker global outlook
  • Japan surpassed China in June as the top holder of Treasuries, increasing its holdings of U.S. bonds, bills and notes to the highest level in more than 2 1/2 years
  • The ECB should deploy an “impactful and significant” stimulus package at its September meeting, says policy maker Olli Rehn
  • Thailand is set to announce a fiscal stimulus package to shore up growth as the U.S.-China trade war and currency strength sap its export-reliant economy
  • Mexico reduced borrowing costs for the first time in five years after inflation slowed, the economy faltered and the U.S. cut its own rate
  • We’re gonna need a smaller boat, writes Zoe Schneeweiss in Terms of Trade. That’s one way to interpret the latest earnings from Maersk, the world’s largest shipping line, and its subtle warning about the outlook for trade
  • Here is what the yield curve says about when the next recession could happen

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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