Few Lessons for U.K., German Pain, RBNZ's Steep Cut: Eco Day

(Bloomberg) --

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

• There’s little historical precedent to help officials tailor a response to a potential no-deal Brexit
• German industrial production fell more than expected in June, further aggravating the country’s manufacturing slump
• Battle lines. Presidents Donald Trump and Xi Jinping are making big bets that could backfire; Trump’s China problem is that a weak yuan is a strong weapon, and in the meantime, China reassures foreign firms that the yuan won’t keep falling
• Fed talk. St. Louis Fed chief James Bullard is sticking to his call for one more interest-rate cut in 2019 and said there’s no need to exaggerate responses to the tit-for-tat trade war
• Cuts elsewhere. Policy makers in New Zealand and India surprised Wednesday with bigger-than-expected interest-rate cuts; central bankers in the Philippines also look set to ease this week while Thailand probably will hold policy
• War chest. Emerging Asia has built up its foreign reserves over two decades, but there are real limits to that tool in this downturn

To contact the reporter on this story: Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net

To contact the editor responsible for this story: Nasreen Seria at nseria@bloomberg.net

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