Powell’s Speech, Germany’s Trouble, China Revamps Rates: Eco Day

(Bloomberg) --

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

• Federal Reserve Chairman Jerome Powell will have no lack of material to choose from when he kicks off the central bank’s annual Jackson Hole symposium Friday with a speech on the challenges for monetary policy
• President Donald Trump said negotiations with China were going well but suggested he wasn’t ready to sign a trade deal, hours after his top economic adviser laid out a potential timeline for the resumption of discussions with Beijing.
  • Uncertainty created by the trade war causes more economic damage than the tariffs themselves, according to Bloomberg Economics
• Euro-area inflation was weaker than initially reported in July, raising pressure on European Central Bank policy makers to consider more stimulus in September.
• Germany’s central bank warned that the country could soon tip into recession. Finance Minister Olaf Scholz suggested the government could muster 50 billion euros ($55 billion) of extra fiscal spending in an economic crisis.
• China’s central bank said it’ll start releasing a new reference rate for bank loans, a further step in a long-awaited reform to interest rates; here’s a QuickTake on what’s behind the shake-up
• Here’s everything you need to know about what’s happening in the world economy this week

To contact the reporter on this story: Eddie Spence in London at espence11@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Zoe Schneeweiss

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