PMIs Spoil Truce Party, China Pain, Savior-Villain Fed: Eco Day

(Bloomberg) --

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

• Markets celebrated a weekend thawing of Trump-Xi relations, but that hasn’t won over economists, and probably won’t reverse bets on a Federal Reserve interest-rate cut
  • Morgan Stanley even lowered its growth forecast for the global economy
• Riksbank Governor Stefan Ingves is likely to ignore the growing momentum for easing emanating from Frankfurt and Washington, for now
• Russians are doing will less as the government squirrels away $100 billion
• Factory hush. Sour manufacturing sentiment readings that swept Asia again in June are revealing the prevailing headwinds of weaker global growth; Japanese manufacturers reinforce the gloom in a separate survey
• Back in Beijing. China’s suffering PMI and the burden of existing U.S. tariffs keeps growth there under pressure, Bloomberg Economics analysis shows
• Villain and savior. The Fed, believed to have killed some past economic expansions, is being relied upon to save the record-long current one
• Tough talk. The Bank of International Settlements warned governments to get serious about growth and to redress policy imbalances with little central bank firepower remaining
• Shock-low. Yields on Australia’s 10-year government bonds just hit an all-time low, meaning each of the nation’s bonds now yields less than the bottom of the central bank’s inflation target range

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

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Karthikeyan Sundaram, Pradeep Kurup

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