Trump Doubles Down, Three Fed Cuts, Dickens-Like Future: Eco Day

(Bloomberg) -- Welcome to Tuesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help get your week started:

• The U.S. prepared to hit China with new tariffs even as Donald Trump said he’ll meet Xi Jinping next month; Trump also warned China against excessive retaliation
• Boston Fed chief Eric Rosengren said it’s too early to tell if the U.S. economy will be hurt and monetary policy altered by the trade war. Here’s why China’s Treasury holdings are a double-edged sword and a refresher on how we got to where we are
• Three 2019 rate cuts? Options trading suggests there’s appetite for bets on an even more dovish Fed. Here’s a chart of what’s priced in
• Britain risks following the U.S. on declining life expectancy and stagnant wages for the less-educated portion of the population if the causes of inequality go unchecked
• Europe has a long way to go if it’s to deliver on the hope sparked by recent economic numbers. Meantime, the EU is finalizing a list of U.S. goods to target with retaliatory tariffs in the event Trump imposes levies on car imports
• There’s limited hope for an imminent turnaround in the global economy as the richest nations continue to lose momentum
• U.S. households continued to moderate their expectations for future inflation rates, according to a new Fed survey. Meanwhile, Goldman says a further escalation of tariffs will have an even greater impact on prices as well as economic growth
• As Bank of Canada chief Stephen Poloz enters the final year of his term next month, the guessing game on his successor is underway
• Pakistan’s economy is going through a familiar boom-and-bust cycle and that’s forced it back to the IMF, as this QuickTake explains
• It’s not just shipments between the world’s biggest economies in dispute, ship-to-ship interactions between the world’s biggest militaries in contested waters are a regular potential flash point

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, Chris Bourke

©2019 Bloomberg L.P.