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China Dodges Currency Tag, Canada Decision, USMCA Trip: Eco Day

China Dodges Currency Tag, Canada Decision, USMCA Trip: Eco Day

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

  • The Trump administration again refrained from labeling China a currency manipulator, a decision that leaves a campaign promise unfulfilled but avoids further escalation in the trade war
    • At the same time, the U.S. Treasury added Singapore, Malaysia and Vietnam to its watchlist
    • Beijing accused the U.S. of abusing a national security exception at the World Trade Organization by cutting off Huawei to American suppliers
    • Meanwhile, China, which again saw its economic outlook deteriorate, is gearing up to use its dominance of rare earths to hit back in the deepening trade spat
  • It’s decision day in Canada, but Governor Stephen Poloz will probably keep interest rates unchanged in what looks to be a prolonged hiatus, at least until after elections in October
  • A bipartisan group of U.S. congressional staff plan to visit Mexican government officials to discuss labor reforms that House Speaker Nancy Pelosi has said need to be implemented there to gain Democratic support for President Donald Trump’s new Nafta
  • With Latin America’s largest economy forecast to contract in the first quarter, economists are poring over their models to figure how Brazil’s recovery eluded them for a third year
  • In Europe, Italy came in for further criticism from the European Central Bank, with policy makers rejecting the idea of a debt guarantee and renewing warnings about excessive debt

To contact the reporter on this story: Zoe Schneeweiss in London at zschneeweiss@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Lucy Meakin

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