China's Treasuries Tumble, Trump Trade Gain, U.S. Jobs: Eco Day

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

• China’s holdings of U.S. Treasuries fell to the lowest level in a year-and-a-half amid a bruising trade war with the Trump administration. Meantime, Treasury is beginning to think outside the box about ways to fund escalating borrowing needs that are on course to exceed $12 trillion over the next decade
• President Donald Trump said he may soon meet with Xi Jinping to finalize details of a possible trade deal as he declared negotiations in Washington were making progress. He is dispatching top trade negotiators to China following the two days of talks
• Hiring probably hit another milestone in January, notching a record 100th month of gains even as the lengthiest U.S. government shutdown weighed on other parts of the economy. Carl Riccadonna says the jobs report could set the stage for the Federal Reserve to return to interest-rate hike talk
• The Fed may be losing its economic religion, or at least becoming more agnostic when it comes to the concept of the Phillips Curve. Meanwhile, Herman Cain, the former pizza company executive who ran for the 2012 Republican presidential nomination, is being considered by Trump for a seat on the central bank board
• Indonesia wants to re-position its Batam island as an alternative shipping and manufacturing hub to Singapore with a potential to draw $60 billion in new investment

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

©2019 Bloomberg L.P.