Tariffs Kick In, Turkey’s GDP, ECB Stimulus Debate: Eco Day

(Bloomberg) --

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

• Whether a recession is brewing in the U.S. and world economies may become clearer this week as a wave of vital data is released globally
• The Trump administration’s tariffs on roughly $110 billion in Chinese imports took effect on Sunday and China immediately retaliated. But there wasn’t much reaction in Chinese state media, which instead signaled the government is ready to weather any economic turbulence
• More European Central Bank policy makers are weighing into the debate over whether the economy needs another strong blast of monetary stimulus, adding to signs that President Mario Draghi has some persuading to do if he’s to win a consensus for action
  • New central bank chiefs assume office in Austria and Ireland
• Turkey’s economy grew at the slowest pace in a year in the second quarter amid political uncertainty
• Argentina’s government imposed capital controls to halt a slump in foreign currency reserves and the peso that has pushed the country to the brink of default
• The outlook for China’s manufacturing sector deteriorated further in August, underlining the weakness in the domestic economy. The result reinforces the need for policy support, writes David Qu. Downward pressure is also building across other Asian nations
• Australia’s central bank could reach the lower bound of interest rates within just six months and be forced to confront unconventional policy, as tumbling commodity export prices pile on extra pressure
• India’s biggest bank overhaul in decades may hurt a bad loan clean-up and slow lending approvals needed to reverse its economic slump

To contact the reporter on this story: James Mayger in Beijing at jmayger@bloomberg.net

To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Zoe Schneeweiss

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