May Brexit Delay, Yellen Praises Economy, Trump-Xi Deal: Eco Day

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

  • Theresa May is considering a plan to delay Brexit and stop the U.K. leaving the EU with no deal next month, according to people familiar with the issue. The pound rallied on the report
  • Former Fed Chair Janet Yellen says the U.S. economy “is doing well” and President Donald Trump doesn’t understand the central bank
  • Trump raised the prospect that he could sign a new trade deal with Chinese President Xi Jinping. Trump’s decision to extend a tariff deadline on Chinese goods provides Xi with some temporary relief as he struggles to arrest an economic slowdown
  • The ECB is getting some counterintuitive advice on how to respond to the euro area’s deepening economic slowdown -- raise interest rates
  • As the drop in Hong Kong housing prices nears correction territory, concern is mounting about the toll the downturn will exact on the economy. Financial Secretary Paul Chan will have a much smaller pile of cash to distribute than last year when he presents the city’s budget Wednesday, and a longer list of problems to address
  • India is missing out on a potential investment boom as a result of uncertainty surrounding its looming general election
  • Israel’s first increase in interest rates since 2011 is looking more like an aberration by the day
  • For almost two years, the question has lingered over China’s market-roiling crackdown on financial leverage: How much pain can policy makers stomach? Now it looks like the limit has been reached
  • Here’s a summary of recent remarks by Fed policy makers
  • Finally, what’s a current account deficit and who’s worried about them? This QuickTake has the answers

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