What's Next for U.S.-China, Fed Minutes Reveal Caution: Eco Day

(Bloomberg) -- Sign up for China Rising, a new weekly dispatch on where China stands now and where it's going next.

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

  • China and the U.S. are separately struggling to come in for unparalleled, simultaneous soft landings, an effort complicated by the trade war they’re waging at the same time
  • What now? With trade talks over, the Trump administration is pushing for a way to make sure China delivers on its commitments in any deal the two nations reach to end a war that’s roiled financial markets and dimmed the outlook for global growth
  • Early signals from the negotiations appear promising, says Tom Orlik. While much uncertainty remains, a positive market reaction shows investors dialing down estimates of trade-war escalation
  • Minutes of the Federal Reserve’s December meeting revealed policy makers took a more cautious approach to further rate increases than their statement indicated; the effects of the central bank’s balance-sheet runoff are also beginning to weigh heavily on their minds
  • Chinese policy makers are continuing their piecemeal approach to arresting the slowdown in the world’s second-largest economy, as further details emerged of measures to ensure credit to small businesses and ease their tax burden
  • The Bank of Canada indicated less urgency in its push toward higher interest rates as the economy grapples with slumping oil prices

©2019 Bloomberg L.P.