Consecutive RBA Cuts, Manufacturing Slump, New Tariffs: Eco Day

(Bloomberg) --

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

• The Reserve Bank of Australia’s policy decision Tuesday is more unusual than most. Not only could it deliver consecutive interest-rate cuts –- the last time was in 2012 -- it’s also the first time the RBA board will meet in Darwin in more than 50 years
• Global manufacturing took another knock at the end of the second quarter, signaling a worsening economic growth outlook as U.S.-China trade tensions continued to simmer
• Meanwhile, President Donald Trump said a new round of trade talks with China is underway as the U.S. added new products from the EU to potentially target with retaliatory tariffs in a trans-Atlantic subsidy dispute between Boeing Co. and Airbus SE.
• It’s not often you can say this. But we’ve just witnessed a potentially historic weekend for the world economy. So it’s worth thinking through how the history books might record it. Here’s a first draft from Shawn Donan
• The ECB could be headed for its first-ever female president as EU leaders haggle over top policy positions. Meantime, policy makers gave added impetus to expectations that more monetary stimulus is on the way, expressing concerns about the euro zone’s feeble inflation outlook
• Sweden’s main employer group is preparing to defend the key pillar of the labor market against a brewing union wage rebellion
• Italy’s populist government lowered its 2019 budget deficit in a bid to comply with EU rules and avoid sanctions for failing to rein in debt

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

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