Fed Hawkish Tilt, Trump's Trade Leverage, EU Inflation: Eco Day

(Bloomberg) -- Welcome to Tuesday, Asia. Here’s the latest news from Bloomberg Economics:

• Carl Riccadonna explains Bloomberg’s Fed spectrometer and how it finds a hawkish tilt at the FOMC ahead of this week’s meeting. Do you dot plot? If not, here’s a quick overview to understand the next Fed forecast
• Tom Orlik weighs up who has more leverage in the U.S.-China trade war and finds its probably Trump, for now. The U.S. and China are digging in for what could be a long and bruising fight, testing the resilience of the strongest global upswing in years
• Mario Draghi sees a “relatively vigorous” pick up in underlying inflation, signaling the European Central Bank is on track to raise interest rates late next year
• Trump and his South Korean counterpart signed a renegotiated free-trade agreement, marking the first time the U.S. president has finalized a major trade deal since entering office. Meantime, at the UN, leaders from Latin America, Africa and Asia expressed concerns about rising tensions between the world’s two largest economies
• Indonesia is ramping up efforts to shield the rupiah from a global rout that’s rattling emerging markets. Argentine President Mauricio Macri said a revised agreement with the IMF will help shore up investor confidence in his country
• German Chancellor Angela Merkel warned EU leaders against taking an excessively harsh line over Brexit -- but French President Emmanuel Macron turned up the heat

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

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