Forever Trade War, China’s Worst Case, Europe Inflation: Eco Day
Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help round off your week:
- The trade war between the U.S. and China doesn’t look like it’s heading for a truce anytime soon, casting a shadow over financial markets and the global economic outlook
- China’s economic growth could tumble, debt surge and foreign companies flee in a deepening trade war, economists warn as a week of escalating tensions forces them to ponder worst-case scenarios
- Meanwhile, policy makers will increase stimulus measures in proportion to the impact of higher tariffs from the U.S. in order to keep the economy in a “reasonable range,” the Chinese government said. Beijing separately signaled a lack of interest in resuming trade talks with the U.S.
- Euro-area core inflation was revised higher in April, and is now showing the fastest reading since 2017
- Meanwhile, European Central Bank officials dragging their feet over a potential revamp of their negative interest rates might be shutting off one way to convince investors they are serious on stoking inflation
- The number of foreigners registered in Poland has more than quintupled in the past five years, easing the tension on a labor market grappling with a record shortage of workers
- Finally: The latest episode of our Stephanomics podcast investigates how rising protectionism, slowing global growth, new technologies and and Germany’s own underinvestment in its infrastructure is threatening the country’s economic model
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