Fed Inches Toward Cut, Trade Deadlock, China Outlook: Eco Day

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

• The Federal Reserve is inching toward an interest rate cut after Chairman Jerome Powell signaled an openness to loosening policy if necessary
• Global central banks are resuming their first-responder role as the world economy runs into trouble
• U.S. Treasury Secretary Steven Mnuchin this weekend will have his first chance to break an impasse in a deepening trade war with China -- if officials from the two countries decide they want to jump-start talks at an international meeting in Japan
• The International Monetary Fund trimmed its forecasts for economic growth in China, and said the trade war with the U.S. is tilting the balance of risks to the downside
• Britain’s dominant services industry expanded more than forecast in May, a survey showed, though that wasn’t enough to lift the overall economy out of stagnation
  • Meanwhile in the euro area, strength among service providers helped economic activity expand at a modest pace
• ECB policy makers are in Vilnius to plot a course out of the euro area’s rough patch
  • They have stimulus on their minds, so here’s a look at their tool-kit
• Anyone vying to take Mark Carney’s place as Governor of the Bank of England is running out of time to submit their application

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, Brian Swint

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