Tariffs Hiked, BOJ's Concerns, the Gig Economy: Eco Day

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

  • The U.S. hiked tariffs on more than $200 billion in goods from China on Friday in the most dramatic step yet of President Donald Trump’s push to extract trade concessions, deepening a conflict that has roiled financial markets and cast a shadow over the global economy. China promised to retaliate
  • Bloomberg Economics notes that not many Chinese firms could live with 25% tariffs
  • Escalating tariffs on Chinese goods could push U.S. businesses to pass on these higher costs to consumers, said Atlanta Fed President Raphael Bostic
  • Meanwhile, the U.S. trade deficit with China shrank to the narrowest in almost three years
  • It’s U.K. GDP day -- Bloomberg Economics estimates that Brexit-related stockbuilding added 1 percentage point to growth last quarter
  • Europe’s leaders will have no one to blame but themselves if they can’t find a female candidate to even consider for the presidency of the European Central Bank
  • If the gig economy plays a significantly expanded role, the impact will likely be deflationary and is going to cause trouble for central bankers, writes Tom Orlik
  • Concern has grown among some Bank of Japan board members over the side effects of the BOJ’s massive monetary easing, judging by comments from the April meeting released Friday
  • Australia’s central bank slashed its near-term economic growth outlook and is relying on persistent hiring strength to cushion a property-driven downturn in household spending

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