Recession Risk, China’s 2050 Plan, Brexit Lessons: Eco Day

(Bloomberg) --

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

• Goldman Sachs is raising concerns of a U.S. recession as the trade war with China intensifies. The U.S. and world economies are at their riskiest moment since the global financial crisis, says Larry Summers
• Even before the trade war, Xi Jinping’s plan to turn China into one of the world’s most advanced economies by 2050 was ambitious. Separately, the IMF said China should keep its exchange rate flexible
• As they look to ease monetary policy, central bankers are also singing from the same songsheet when it comes to government support for their economies. They want more of it
• Still, even with Germany mired in an industrial slump and possibly flirting with recession, don’t expect Chancellor Angela Merkel to loosen the purse strings just yet
• The Swiss National Bank’s sight deposits jumped the most in more than two years last week, a sign it intervened to weaken the franc
• There may be insights for the U.K. on leaving the EU without a deal from a long time ago on the other side of the world: New Zealand
• Chinese policy makers are holding back from rolling out the big guns of monetary stimulus, keeping options in reserve as the trade standoff with the U.S. risks morphing into a global currency war. Meantime, the People’s Bank of China is “close” to issuing its own cryptocurrency
• Hong Kong’s economy, already reeling from the trade war and China slowdown, is ill placed to absorb a blow from escalating protests, writes Bloomberg Economics’ Qian Wan

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Zoe Schneeweiss

©2019 Bloomberg L.P.