RBA Deficit Dilemma, Hong Kong Pain, Korea Rate Guide: Eco Day

(Bloomberg) -- Happy Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to take you into the weekend:

• President Donald Trump said Thursday that the U.S. and China are scheduled to discuss trade today -- without giving details
• Australia is on track to close twin deficits that were once seen as the Achilles heel of its small and open economy. Yet the dramatic turnaround is probably not what the Reserve Bank is after
• Whether it’s glitzy shops in Central or decades-old family businesses along the city’s winding streets, retailers of all levels across Hong Kong these days find themselves struggling in much the same way
• India’s prolonged consumption slowdown and a deteriorating global environment are delaying a recovery in Asia’s third-largest economy
• Indonesia is bracing for a bigger-than-expected shortfall in tax collections as a global slowdown and simmering U.S.-China trade tension weigh on demand
• The Bank of Korea is expected to keep its benchmark interest rate unchanged today, with board members preferring to monitor the impact of July’s rate cut
• ECB policy maker Klaas Knot said the euro-area economy isn’t weak enough to warrant the resumption of bond purchases and such a step shouldn’t be taken unless the slowdown worsens
• Meantime, incoming ECB President Christine Lagarde offered a clear sign that she’s ready to follow Mario Draghi’s path and keep monetary policy ultra loose

To contact the reporter on this story: Chris Bourke in Sydney at cbourke4@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Tracy Withers

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