Recession Risk, Emergency China Law, Taxes Trump Trade: Eco Day

(Bloomberg) -- Welcome to Tuesday, Asia. Here’s news from Bloomberg Economics to help get your day started:

• China and the EU warned unilateral protectionism risks triggering a global recession. While Xi Jinping vowed to match Trump blow for blow in any trade war, some in Beijing are openly wondering if China is up for the fight. Here are indicators economists are monitoring for damage from the trade conflict. It’s already showing up in Canada. Meantime, this chart suggests global trade was cooling even before Trump cut loose
• The Treasury Department is planning to heighten scrutiny of Chinese investments in sensitive U.S. industries under an emergency law. While the plan to deploy some of the most restrictive investment limits against China marks a setback for Treasury Secretary Steven Mnuchin.
• Carl Riccadonna argues the stimulus from Trump’s tax cuts on top of an already powerful economic expansion is likely to mute the impact on U.S. growth from the trade dispute
• Goldman and Citi are among those souring on emerging markets as the brewing trade war combines with a currency rout. In one of the biggest nations, Indonesia’s most populous province is set to go the polls in what’s shaping up as a test of President Joko Widodo’s popularity
• New Zealand is aiming to become a global leader in communicating monetary policy. The central bank also said the kiwi remains too high
• Trump accused Harley Davidson of waving the white flag in the brewing trade war as the motorcycle maker plans to further retrench in the U.S.
• Japan’s aging population is a lucrative opportunity for the death business

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

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

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