Trump's China Exodus, German Virtues, Thrifty Tourists: Eco Day

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

• Two top White House officials said President Donald Trump has the authority to force American companies to leave China, prompting Beijing’s top trade negotiator to call for calm
• Most Germans live by the credo that saving is a virtue, but the European Central Bank’s negative interest rates risk making a mockery of the national obsession, prompting politicians to seek ways to insulate thrifty citizens and keep the burden on the country’s beleaguered banks
• The beer isn’t flowing like it used to in Spain’s tourist hot spots, and Brexit is part of the problem as sterling’s decline makes U.K. travelers more price sensitive.
  Israel’s economic transformation has turned it into an “emerging markets safe haven” that continued to absorb money from abroad despite maintaining near-zero interest rates, according to central bank Governor Amir Yaron
• Central bankers have limited ability to cushion the global economy from the headwinds of mounting political uncertainty, RBA Governor Philip Lowe said at Jackson Hole over the weekend
• The U.S. and Japan agreed in principle on a trade deal under which Japan will slash tariffs on U.S. beef, pork and other agricultural products, while continuing to face existing levies on its own auto exports
• Israel’s economic transformation has turned it into an “emerging markets safe haven” that continued to absorb money from abroad despite maintaining near-zero interest rates, says central bank Governor Amir Yaron
• The escalating trade war means investors won’t have long to chew over the outcome of weekend meetings of central bankers in Wyoming and world leaders in France. Here’s our guide to the world economy’s week ahead

To contact Bloomberg News staff for this story: Jeffrey Black in Hong Kong at jblack25@bloomberg.net

To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Henry Hoenig

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