U.S. Payrolls, IMF Pulled Into Trade War, Fed's Powell: Eco Day

(Bloomberg) --

Welcome to Friday, Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your day started and send you into the weekend:

• It’s U.S. jobs day. The data may be inflated by Census Bureau hiring for the 2020 count, and economists say the underlying numbers may show that job gains are slowing
• President Donald Trump’s trade war with China is threatening to draw one of the global economy’s neutral referees into the fray: the International Monetary Fund
• Federal Reserve Chairman Jerome Powell has said that he looks to the bond market as a guide to the stance of monetary policy. And what it’s telling him today is that he’s falling behind the curve in cutting interest rates
• China’s central bank said it will cut the amount of cash banks must hold as reserves to the lowest level since 2007, injecting liquidity into an economy facing both a domestic slowdown and trade-war headwinds
• Mario Draghi is expected to go big in a final stimulus push as European Central Bank president, overriding protests from among his ranks that tools such as bond purchases aren’t yet needed
  • Meanwhile, German industrial production unexpectedly declined further in July as trade tensions and waning business confidence continued to weigh on global demand
• Finally, here’s our weekly wrap of what’s going on in the world economy

To contact the reporter on this story: Zoe Schneeweiss in London at zschneeweiss@bloomberg.net

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

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