Fed Extended Pause, Trump China Threat, Japan Sputters: Eco Day

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

• Fed chief Chairman Jerome Powell is likely to signal again this week that monetary policy is on hold, buttressing the belief that he may steer clear of action through 2020. Meanwhile, President Donald Trump renewed his assault on the Fed, saying it was hurting the economy by not deploying negative rates
• Trump also said the U.S. will increase tariffs on China in case the first step of a broader agreement isn’t reached. His administration ratcheted up its pressure on the WTO by raising the possibility of blocking the approval of its biennial budget
• The boost to Japan’s economy from shoppers splurging before last month’s sales tax hike was likely smaller than in 2014
• Germany through the worst of its downturn, peace in the trade war and green shoots for the global economy next year. It’s what investors have long dreamed of. Now, they’re starting to believe it. Expectations surveys support the optimism
• A range of indicators shows Hong Kong’s economy reeling from the escalating protests and there’s little to suggest any letup in downward pressure heading into next year, writes Qian Wan
• India’s headline inflation probably breached the central bank’s 4% medium-term threshold, but that surge -- driven by high onion prices -- is unlikely to distract monetary policy makers
• The EU and Cambodia moved closer to a confrontation that may be a litmus test for whether free trade promotes free societies

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, Jason Clenfield

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