Factory Slump, New Tariffs, Argentine Capital Controls: Eco Day

(Bloomberg) --

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

• Factories across vast parts of Europe and Asia remain deeply mired in a crisis that took another turn for the worse over the weekend
• The Trump administration’s tariffs on roughly $110 billion in Chinese imports took effect on Sunday and China immediately retaliated. But there wasn’t much reaction in Chinese state media, which instead signaled the government is ready to weather any economic turbulence
  • The Caixin PMI’s surprise jump back into expansion in August is striking but Bloomberg Economics’s Chang Shu is not convinced it indicates genuine improvement in China’s export sector
• Argentina’s President Mauricio Macri imposed capital controls aimed at containing the country’s escalating financial crisis and earning a slim chance at re-election -- or at least seeing out the remainder of his presidency.
• The euro area’s manufacturing recession continued for a seventh month in August, adding pressure on the European Central Bank and national governments to add stimulus.
  • New central bank chiefs assume office in Austria and Ireland
• U.K. Prime Minister Boris Johnson promised to reform the housing market, but policy chatter and Brexit could have the biggest impact, according to Bloomberg Economics’s Niraj Shah

To contact the reporter on this story: Eddie Spence in London at espence11@bloomberg.net

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

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