Mnuchin Mystery, China's Ruthless Renewal, BOJ Watch: Eco Day

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

  • In the epicenter of China’s private enterprise, the U.S. trade war, weak domestic demand, rising costs and crackdowns on shadow financing and pollution are taking their toll -- and at the same time forging a new economy
  • Is he or isn’t he? Treasury Secretary Steven Mnuchin is considering measures to roll back tariffs on Chinese products in order to calm financial markets, the Wall Street Journal reported. His department quickly denied the story
  • More Bank of Japan watchers see the central bank keeping policy unchanged this year, underscoring growing risks to the economy and the BOJ’s inflation efforts; but where is the BOJ’s pain threshold?
  • Southeast Asia, seen as a potential winner from the U.S.-China trade war, is starting to see more sour data, as tensions weigh heavily on the trade-reliant region
  • The Trump administration is said to be considering whether to renominate Marvin Goodfriend to join the Federal Reserve Board
  • Fed Governor Randal Quarles expressed optimism about the state of the U.S. economy, calling strong hiring and low inflation a “good environment” even as investors focus on mounting threats to growth
  • The Fed’s new keyword is “patient,” and it clearly means the central bank is on hold for the time being, says Tim Duy

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