China Dodges FX Tag, Fed Departures, RBA Seen at 0.5%: Eco Day

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

• The Federal Reserve Bank of New York said two of its top officers are departing -- including Simon Potter, who oversees its strategically vital trading desk -- in a rare double exit from the senior ranks of the U.S. central bank
• The Trump administration again refrained from labeling China a currency manipulator, a decision that leaves a campaign promise unfulfilled but avoids further escalation in the trade war
• China accused the U.S. of abusing a national security exception at the World Trade Organization by cutting off Huawei Technologies Co. to American suppliers
• Meantime China’s economic outlook deteriorated this month, after April’s weaker-than-expected performance combined with the renewed trade dispute to hit confidence. This graphic illustrates the weakening
• A decline in global car sales likely reduced world gross domestic product by 0.2% last year
• The RBA’s signal that it expects to lower rates this year is setting off a fresh round of forecasts for deeper policy cuts as economists ponder where the lower bound’s level lies

To contact the reporter on this story: Enda Curran in Hong Kong at ecurran8@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Paul Jackson

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