Fed Steps In, Vietnam Success Struggle, World Bank Fear: Eco Day

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

• The Federal Reserve is preparing a second blast of cash in attempts to restore calm in U.S. money markets
• World Bank President David Malpass said the global economy is poised to decelerate more than previously estimated
• Vietnam is finding it’s hard to win a trade war even when businesses are trying to hand it victories
• American business is holding back on investment, and that’s holding back the economy
• South Korea removed Japan from its list of most trusted trading partners, the latest sign of unraveling ties between two U.S. allies
• Japan remained the biggest foreign owner of Treasuries in July with its holdings rising to a more than two-year high
• Bank of Japan officials think lowering the negative interest rate, if they chose to do so, wouldn’t backfire in financial markets
• The attack on Saudi Arabia’s oil could rip through an economy whose vulnerabilities were already laid bare by output curbs
• The Trump administration is optimistic about concluding a trade deal with Japan, which may be formally announced this month. If it imposes new tariffs on European goods next month, America’s transatlantic allies can’t say they’ve been blindsided
• Mario Draghi’s controversial push to restart bond purchases counted on the support of ECB policy makers who might never have expected to be so influential
• Adriana Dupita says pay attention to Brazil’s central bank’s post-meeting statement for any indication on the future policy path
• The central bank of Norway, dubbed by local economists as “the last hawk,” could this week be about to deliver its fourth interest rate increase. It may also be the last in the current cycle

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.