Global Growth Slowest Since 2009, $1 Trillion Deficits: Eco Day

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

  • Global growth is at its weakest since the great financial crisis, says Dan Hanson, citing a new GDP tracker
  • President Donald Trump’s newest budget forecasts the fiscal deficit surpassing $1 trillion this year and staying above that level until 2022. Trump’s deficits and the ‘AOC Factor’ helped Modern Monetary Theory burst from obscurity. Tom Orlik also weighs in on MMT
  • An increasing number of economists see additional stimulus as the Bank of Japan’s next policy step, while they are unanimous in forecasting no change at this week’s board meeting
  • China’s multi-year campaign to contain financial risk is re-focusing on so-called “hidden debt” owed by local governments, as officials seek to reduce repayment pressures amid falling tax revenues
  • U.S. households reduced their expectations for inflation to the lowest level in 18 months. Meantime, Trump hasn’t set a date to meet his Chinese counterpart Xi Jinping to negotiate an end to their trade war
  • The European economy’s growth prospects are “somewhat sluggish” but could get a boost from improvement in China, according to Isabelle Mateos y Lago, chief multi-asset strategist at BlackRock Investment Institute. Meanwhile, European officials sought to quell fears Greece is going off track just months after its bailout ended

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