Chinese Stimulus, Fed Warning, Sino-Japan Rapprochement: Eco Day
(Bloomberg) -- Happy Hump Day, Asia. Here’s the latest news from Bloomberg Economics:
- China is responding to a stock market slump and an economic slowdown with a trickle of stimulus, and it appears policy makers are targeting the economy’s weakest links
- Meantime, President Trump’s pressure on Beijing to open its markets by hurting the economy may be providing Chinese counterpart Xi Jinping with the perfect cover story
- Atlanta Fed President Raphael Bostic said he supports further gradual interest-rate hikes and warned that running the economy “hot’’ with too much stimulus could end in a recession hurting lower-income Americans. The U.S. is poised for its best quarterly run of growth since 2014, handing Trump a $20 trillion talking point just in time for the midterms
- When Shinzo Abe took office six years ago, it would’ve been unthinkable for China’s leaders to roll out the red carpet for him. The Japanese prime minister can thank Trump for the turnaround
- Amid earnings season, companies are saying they’re ready to relocate supply chains if the cost of importing Chinese goods becomes prohibitive. Meantime, expectations for a one-on-one meeting between Trump and Xi are already being lowered
- Ending Singapore’s “shoe-box sized” apartments may be reason for residents to cheer. But for developers, it could prove a double whammy
- Tim Mahedy reckons the Bank of Canada is poised to take another step toward policy normalization Wednesday by raising the benchmark rate to 1.75 percent
- European lawmakers backed Ireland’s Sharon Donnery and Italy’s Andrea Enria to become the region’s top banking supervisor, a person familiar with the matter says
- The French government told companies to begin preparing for all Brexit scenarios, including no deal between the EU and the U.K.
- Turkey is getting closer to laying blame for the killing of journalist Jamal Khashoggi on Saudi’s Crown Prince, while Ziad Daoud argues that Saudi Arabia’s Vision 2030 is slipping further from sight
- A 50 percent plunge in a nation’s currency -- the worst in emerging markets this year -- carries a lot of pain. Just ask Argentina
- MAGA! Trump’s trade war with China appears set to increase the price of yet another all-American icon -- the baseball cap
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