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Can Trump Sack Powell?, Tariff Hit Seen, China Easing: Eco Day

Can Trump Sack Powell?, Tariff Hit Seen, China Easing: Eco Day

(Bloomberg) --

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

  • President Donald Trump has told confidants as recently as Wednesday that he believes he has the authority to replace Jerome Powell as chairman of the Fed board. Meanwhile, did Powell out his own dot?
  • With Trump and China’s Xi Jinping expected to meet at the G-20 summit, there’s growing evidence the trade war is eroding not just short-term growth but also longer-term prospects, writes Tom Orlik
  • A range of indicators continues to signal the need for a looser monetary stance by the People’s Bank of China
  • The world’s central banks spent the week embracing easier monetary policy, paving the way to rate cuts perhaps as soon as next month
  • The leaders of Southeast Asia’s economies are set to gather in Thailand as the shadow of Trump’s trade war keeps them on edge
  • As the U.S. and Europe take a dovish turn, BOJ chief Haruhiko Kuroda signaled he’s unfazed. Japan’s key inflation gauge edged down in May, adding to the pressure of a strengthening yen
  • At the Swiss National Bank, a familiar foe has come back into view
  • From Bible publishers to fishing rod suppliers, firms are streaming to Washington pleading for mercy from Trump’s most radical trade threat yet. The new trade deal between the U.S., Canada and Mexico will allow the countries to compete as a region against the EU and China, Trump said
  • Norway is on a lonely march toward higher rates, torn between a local oil industry running at full speed and slowing growth abroad
  • The basic problem for South Korea’s economy is the trade war that’s reducting demand for Korean inputs in China’s electronics exports, writes Justin Jimenez. Right on cue, South Korean exports, a bellwether for global trade, are showing no sign of recovery
  • EU leaders failed to agree on a series of top appointments, leaving investors in the dark over who will head the ECB going into next year
  • Thailand is already struggling to cope with the environmental impact of a tourism boom that’s expected to lure 40 million visitors. Yet the influx is on course to hit 65 million a decade from now
  • New payments services like Facebook’s Libra could be granted unprecedented BOE backing under plans announced by Governor Mark Carney. His counterpart Down Under, however, is much less enthused

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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