Fed Split After Cut, Kiwi GDP Spurt, Brexit Will Fades: Eco Day

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

  • Fed policy makers lowered their main interest rate for a second time this year and Jerome Powell said that “moderate” policy moves should be sufficient to sustain the expansion. Here’s the latest dot plot
  • The central bank also made clear it doesn’t want U.S. money market rates to spike again, announcing it will -- for the third day in a row -- inject cash. Powell nonetheless downplayed the turmoil
  • New Zealand’s economic growth was the slowest in more than five years in the second quarter, giving the central bank scope to cut rates again
  • There’s a sinking feeling that the desire to get a Brexit deal done to avert the potential economic catastrophe of a no deal is evaporating
  • President Donald Trump said he wants tougher U.S. sanctions on Iran as his top diplomat arrived in Saudi Arabia to consult with leaders
  • The Bank of Japan is expected to stand pat on policy today, with recent stability in financial markets relieving pressure for it to follow suit
  • Indonesia’s central bank is under pressure to cut interest rates for a third straight month as a deteriorating global economy threatens domestic growth
  • More than half of U.S. CFOs anticipate the economy will be in recession within a year, with optimism at its weakest since 2016
  • Asia’s economies will charge ahead in coming decades, boosting their collective share of trade and capital flows, McKinsey Global Institute says
  • India’s slowdown and a simmering shadow banking crisis is putting Prime Minister Narendra Modi’s goal of crafting a $5 trillion economy by 2025 at risk
  • Brazil’s central bank cut its benchmark policy rate to 5.5%, as widely expected -- and the post-meeting statement suggests there is more to come, says Adriana Dupita
  • Not everyone agrees that rate cuts are warranted in the U.S., but monetary easing by the Fed is making looser policy possible where it’s long overdue
  • Thailand’s ubiquitous tuk-tuk, the noisy, colorful three-wheeled taxi that’s been belching exhaust on local roads for almost a century, is getting a cutting-edge makeover to help carry the local auto industry into the future

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