G-7 Division, Reinhart’s Warning, Orr’s Wait and See: Eco Day

(Bloomberg) --

Welcome to Friday, Europe. Here’s the latest news and analysis from Bloomberg Economics to take you through to the weekend:

• Group of Seven allies are so divided they may squander the chance to find a solution to the world economy’s ailments when they meet in Biarritz, France this weekend
• Two of the world’s most powerful central bankers facing deep policy challenges won’t be attending the Federal Reserve’s annual conference in Jackson Hole this week
• Three Federal Reserve policy makers voiced their resistance to the notion that the U.S. economy needs lower interest rates
• New Zealand’s central bank will do “whatever it takes” to support the economy and will gauge the inflationary impact of this month’s unexpectedly large interest-rate cut before considering further easing
• The new tariffs President Donald Trump has threatened on $300 billion of Chinese goods would drag China’s annual economic growth below 6%, according to a Bloomberg survey, which would be the slowest expansion since 1990
• Harvard University economist Lawrence Summers warned central bankers they are staring at “black hole monetary economics” where small changes in interest rates and even more aggressive strategies do little to solve demand shortfalls
• Also from Harvard, Hong Kong’s rolling political turmoil could prove a tipping point for the world economy, economist Carmen Reinhart said
• Sri Lanka cut interest rates for a second time this year, a day after Indonesia did the same
• Here’s our weekly wrap of what’s going on in the world economy

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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