Fed Beige Book, Hong Kong Housing Hit, Third RBI Cut: Eco Day

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

• The U.S. economy broadly expanded in recent weeks and the business outlook remained “solidly positive,” according to a Fed survey that also indicated some clouds on the horizon
• Hong Kong’s exposure to the trade war between China and the U.S. suggests the city’s sky-high house prices might not last
• The Reserve Bank of India is likely to cement its position as Asia’s most dovish central bank with a third straight interest-rate cut
• The ECB will decide on Thursday whether the euro zone needs more stimulus as its global peers move to shore up a recession-threatened global economy
• Ireland’s government is standing by its choice to run the country’s central bank -- for now -- as the incoming chief finds himself at the center of a political dispute in New Zealand
• Tariffs of 25% on China and Mexico, plus retaliation in both cases, would lower U.S. GDP by 0.8% in 2021, writes Dan Hanson, noting Donald Trump is ignoring a valuable lesson of military history
• China is likely to cut interest rates twice as the intensifying trade war hits the economy’s already-fragile growth, writes David Qu
• Fears that rising trade tensions might undermine global growth are becoming a reality, contributing to a widespread slowdown in the world economy, according to IMF chief Christine Lagarde
• The hottest economic doctrine around says governments should learn to love their public debt. Japan’s been more relaxed than most –- but a looming tax hike suggests it may be about to blink
• Meantime, at the Fed’s conference reviewing its policy tools, nominal-GDP targeters staged a mini revolt

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.