U.S.-China Chat, Great Rate Debate, AMLO Talks Success: Eco Day

(Bloomberg) --

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

• Chinese trade negotiators are set to host their U.S. counterparts at a landmark of jazz-era Shanghai on the city’s riverside Bund, re-opening trade talks with a marked change of atmosphere after an almost three-month hiatus
• Low mortgage rates and thriving employment should be the recipe for a strong housing market. Instead, they’re deepening America’s affordability crisis
• More than half of the Trump administration’s trade war aid for farmers went to just a 1/10 of the recipients in the program, according to analysis of payments by an environmental organization
• There’s no reprieve in sight for the ailing euro area, with economic confidence dropping to its lowest level in more than three years and French growth providing less support than expected
• The Bank of Japan held pat Tuesday while trimming its inflation forecasts, opting to wait and see in advance of the Federal Reserve decision Wednesday in Washington; President Donald Trump weighed in on the Fed again, saying “a small rate cut is not enough”
• Russia’s economy minister issued a stark warning about what will happen if his central bank doesn’t act, and Mexico’s AMLO says he wants policy makers to cut interest rates, though rate cuts have a dark side, too

To contact the reporter on this story: Olivia Konotey-Ahulu in London at okonoteyahul@bloomberg.net

To contact the editors responsible for this story: Fergal O'Brien at fobrien@bloomberg.net, Zoe Schneeweiss

©2019 Bloomberg L.P.