U.S.-China Optimism, Fed's Bostic, Indonesia Reserves: Eco Day

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

  • Within reach? The Trump administration expressed optimism it can reach a “reasonable” trade deal with China as President Xi Jinping dispatched one of his top aides to negotiations in Beijing
  • Meanwhile, here are three reasons why Bank of America thinks the trade war is about to start causing some real pain for the U.S. economy
  • The U.S. central bank should only raise interest rates once this year but keep going with its plan to gradually shrink the balance sheet, said Raphael Bostic, president of the Atlanta Fed
  • Indonesia’s foreign exchange reserves jumped to the highest since May after the government sold $3 billion of bonds overseas and the currency rebounded
  • Jim Yong Kim abruptly resigned as president of the World Bank more than three years ahead of schedule, potentially sparking an international tussle over who replaces him
  • Former U.S. Treasury Secretary Lawrence Summers has jumped into the debate about negative interest rates, signing onto a paper that gives the policy a damning review

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