China Vows Revenge, Asian Tigers Weaken, Fed's Next Cut: Eco Day

(Bloomberg) --

Welcome to Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to help get you through to the weekend:

• China called looming U.S. tariffs a violation of accords reached by Presidents Donald Trump and Xi Jinping, vowing retaliation. Trump suggested Xi meet directly with protesters in Hong Kong, saying it would lead to a “happy and enlightened ending” to protests
• Meantime, China lost its status as U.S.’s top foreign creditor to Japan
• Malaysia bucked the trend across the region to post stronger-than-expected growth in the second quarter. In Singapore, exports posted another double-digit decline in July
• Goldman Sachs slashed growth forecasts for the “Asian Tigers” as their exposure to the world economy -- once one of their greatest strengths -- is now backfiring
• The ECB should come up with an “impactful and significant” stimulus package at its next meeting in September, says policy maker Olli Rehn
• Economists remain confident the Fed will cut interest rates again next month as insurance against a global slowdown. Meantime, one of the most dovish members said market turmoil and a slowing global economy don’t warrant action before the September meeting
• Here’s our weekly wrap of what’s going on in the world economy

To contact the reporter on this story: Jiyeun Lee in Hong Kong at jlee1029@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Chris Bourke

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