Powell Flags Cut, French Tax Probe, No Rate-Cut Panacea: Eco Day

(Bloomberg) --

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

• The Federal Reserve is preparing to cut interest rates for the first time in a decade because it sees a cooling global economy; indeed, nothing seems likely to stop Jerome Powell from cutting later this month
  • Bloomberg Economics’ Carl Riccadonna says the easing is mainly spurred by uncertainty
  • Follow our live blog on his testimony before the Senate Banking Committee
• Growth in U.S. capital expenditures is cooling relative to 2018, but Bloomberg Economics’ analysis suggests that those anticipating a drag from business investment on GDP over the next few quarters may be overly pessimistic
• France won’t back off from its planned tax on companies like Facebook Inc. and Alphabet Inc.’s Google even after the U.S. suggested it may use trade tools against the levy
• Mark Carney declined to comment on his interest in becoming head of the International Monetary Fund, emphasizing the need for a smooth transition for his successor as governor of the Bank of England
• Investors may think central banks can prevent a trade war-induced recession by cutting interest rates, but it’s never that simple, says Bank of Canada Governor Stephen Poloz
• There’s never been a more important time for China to exert its influence at the World Trade Organization, and Zhang Xiangchen is up for the challenge
• The Spanish olive is suffering under Trump’s tariffs -- listen to our latest Stephanomics Podcast here

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, Jill Ward

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