Rosengren’s Caution, PBOC’s Easing, German Stimulus: Eco Day

(Bloomberg) --

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

• Federal Reserve Bank of Boston President Eric Rosengren continued to push back against further interest-rate cuts by the central bank, arguing he’s not convinced that slowing trade and global growth will significantly dent the U.S. economy
• Meantime, President Donald Trump urged the Fed to cut by a full percentage point to aid U.S. and global growth while complaining the “dollar is so strong that it is sadly hurting other parts of the world”
• The German government is getting ready to act to shore up Europe’s largest economy, preparing fiscal stimulus measures that could be triggered by a deep recession, according to two people with direct knowledge of the matter
• Loans will get a little cheaper for Chinese companies after officials introduced a revamped benchmark lending rate; Bloomberg Economics says the People’s Bank of China has signaled intent to reduce borrowing costs to buttress growth
• Head-spinning uncertainty on trade, much of it emanating from Trump, is a major drag on global growth, writes Bloomberg Economist Dan Hanson. Tariffs on Chinese imports are getting a lot of blame for slowing the global economy, but it’s the uncertainty from the president’s Twitter habit and trade policy more broadly that could be even more harmful
• Australia’s central bank is ready to cut interest-rates further if evidence suggests this would boost the economy, and said it reviewed global experience with unconventional steps when policy makers met two weeks ago

To contact the reporter on this story: Enda Curran in Hong Kong at ecurran8@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, James Mayger

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