China Prize Irresistible, Global Debt Soars, Fed’s Star: 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:

• Foreign firms continue to invest more in China even after President Donald Trump called on U.S. companies to look elsewhere, as the rising spending power of 1.4 billion people proves too hard to resist
• Global debt hit a fresh record above $250 trillion in the first half of 2019, with China and the U.S. accounting for more than 60% of new borrowing, the Institute of International Finance said
• Trump’s trade war with China began with an algorithm and then spiraled out of control
• Fed chief Jerome Powell called the U.S. economy a “star” performer and voiced solid confidence that its record expansion will stay on track. Carl Riccadonna expects the Fed to remain on hold for the foreseeable future
• The vulnerability of global growth to trade conflicts and dependence on U.S. momentum were exposed as Asia’s biggest economies faltered and Germany barely dodged a recession
• Two policy makers signaled the ECB is in no rush to further expand monetary stimulus as they urged a deeper rethink of their strategy
• Thailand’s economic expansion likely accelerated modestly in the third quarter from the slowest pace in almost five years, weighed down by the strength of the country’s currency
• Pimco’s Nicola Mai isn’t holding his breath for U.S. and Chinese officials to resolve their differences and pass a sweeping trade agreement. Meantime, China lifted its four-year-old ban on U.S. poultry shipments, a small sign of trade-deal progress
• Chile’s central bank moved to boost liquidity in the financial market, making it easier to get funding and expanding on measures it announced a day earlier
• The Swiss National Bank is taking the economic risks posed by climate change into account when assessing the health of the economy, Governing Board Member Andrea Maechler said
• Reserve Bank of New Zealand Governor Adrian Orr says interest rates need to stay low for a long time
• Is it curtains for the U.S.-China economic relationship? Carolynn Look reports from China, and host Stephanie Flanders talks with Bloomberg Chief Economist Tom Orlik about what it all means

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, Jason Clenfield

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