China Debt Dilemma, U.S. Inflation, Turkey Rate Shock: Eco Day
A man carrying a kite in the shape of the Chinese national flag walks along the Bund while buildings of Pudong’s Lujiazui financial district stand across the Huangpu River as the sun rises in Shanghai, China. (Photographer: Qilai Shen/Bloomberg)

China Debt Dilemma, U.S. Inflation, Turkey Rate Shock: Eco Day

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

  • Ten years ago, China shielded itself from the financial crisis with a wall of stimulus. Now, such self-preservation looks much harder to repeat; on the corporate front, debt-servicing firepower has slumped
  • Underlying U.S. inflation unexpectedly cooled in August, suggesting little urgency for the Federal Reserve to speed up rate hikes. We dug a bit deeper to look at some of the more quirky data
  • Meanwhile, the plateau in CPI vindicates the Fed’s gradualism, argues Carl Riccadonna
  • Turkey’s central bank raised rates by the most since Recep Tayyip Erdogan came to power 15 years ago. Meanwhile, Bank of England chief Mark Carney warned that a no-deal Brexit could mean rate hikes
  • The Bank of Japan’s newly introduced forward guidance was drafted with overseas investors in mind, reflecting an effort to avoid any sharp market reactions
  • You only need to drive an hour out of Beijing to find an example of the Chinese property frenzy gone pear-shaped
  • Trump’s trade war with China is following an increasingly predictable pattern; Indeed, he’s swaggering ahead of possible new talks
  • Mario Draghi insists that the European Central Bank can keep paring back monetary support; he also upped his warning for governments to keep their debt in check; meanwhile, the bank apparently is in no rush to decide on policy for 2019
  • The IMF backed Indonesia’s response to a selloff in its currency; Still, with the rupiah near a two-decade low, foreign investors are dumping the nation’s bonds
  • The U.S. is working on a second, more punishing round of Russia sanctions to be imposed in November for its U.K. nerve-agent attack
  • Why the world won’t have the same weapons to fight the next financial crisis

©2018 Bloomberg L.P.

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