China Response, Pessimistic Outlook, Fed Patience: Eco Day

(Bloomberg) -- Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.

Good morning, Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your Thursday started:

  • China’s Ministry of Commerce says the U.S. unilaterally escalated trade tensions and if it wants talks to resume, it needs to correct what it did and show sincerity
  • After months of predicting a trade deal between the world’s two largest economies, economists at some of the biggest financial institutions are growing increasingly pessimistic
  • In the meantime, Fed officials are in no hurry to move interest rates -- and an escalation in the trade war could keep them on hold even longer.
    • Policy makers further emphasized their commitment to a “patient" stance in the latest minutes, Carl Riccadonna says
    • Meanwhile, the central banks’ influential staff seems to have lost confidence that its bosses will achieve the Fed’s 2% target
  • When Donald Trump first took office in 2017, Beijing officials argued that his tough campaign talk was merely negotiating tactics rather than deeply held beliefs. That now looks completely wrong
  • German business confidence fell to the weakest in more than four years as the escalation of global trade tensions weighed heavily on the outlook
  • The longest economic expansion in the developed world may not be much longer for this world -- listen to our latest Stephanomics Podcast here
  • And finally, how would you fare trying to fill some of Europe’s top jobs? Play our EU Game of Thrones to find out...

©2019 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.