Tariffs Kick in, Shaky Global Economy, Fed Meeting: Eco Day
(Bloomberg) -- Good morning Americas. Here’s the latest news from Bloomberg Economics to help get your week started:
- The Trump administration’s tariffs on another $200 billion in Chinese goods kicked in on Monday, ramping up a trade war between the world’s two biggest economies.
- That came as China dashed prospects for a near-term resolution to the trade war with the U.S., warning President Donald Trump his threats of further tariffs are blocking any potential negotiations
- The escalating conflict is also filtering through to companies. A report Monday showed a closely watched measure of German business confidence slipped in September as the trade spat entered a new round
- Meanwhile, the Bank for International Settlements says that the global economy is looking shaky and the central banks may be powerless if it all goes awry
- The warning came as the Federal Reserve is this week expected to move one step closer to the interest rate that marks the difference between tight and easy money
- While European Central Bank rate hikes may still be some time away, executive board members Benoit Coeure and Peter Praet want to communicate more on the pace of future increases to avoid stirring up markets
- Bank of England policy makers have the chance this week to share their thoughts on interest rates now that Governor Mark Carney has said he’s sticking around for longer
- Meanwhile, a report Monday showed U.K. manufacturing growth cooled to a four-month low in September as foreign demand softened
- Budget blues: Emmanuel Macron’s second budget as French president will hammer home an economic strategy that’s becoming increasingly unpopular: make work pay, whatever the cost
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