Trade Impasse, Hunt for Inflation, Europe’s Long Road: Eco Day

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Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your week started:

• The emerging stalemate in U.S.-China trade negotiations grew out of an earlier deadlock over how and when to remove existing American tariffs that provoked Beijing to threaten to walk away from the talks
  • Donald Trump threatened that the trade standoff with China will “get worse” if there is retaliation for U.S. tariffs that go into effect on Chinese goods Monday
  • The European Union is finalizing a list of U.S. goods to target with retaliatory tariffs in the event that Trump, who is expected to make a decision by May 18, imposes levies on car imports
• If the Federal Reserve’s optimistic take on inflation had traders second-guessing their bets on an interest-rate cut this year, they’re taking matters back into their own hands now
  • Still, inflation isn’t totally dead. From pork in China to iron ore in Brazil, price gains are flickering in parts of the global economy
• Fed officials are speaking out about rising inequality and the harm it does the U.S. economy, but most still hesitate to say monetary policy can do much to help
• Europe has a long way to go if it’s to deliver on the hope sparked by recent economic numbers
• London’s property market is continuing to bear the brunt of Brexit malaise, according to a report from Acadata. Elsewhere, U.K. companies and politicians are underestimating the chances of a no-deal Brexit, the head of a business group said
• Finally, meet the frontrunners to succeed Bank of Canada Governor Stephen Poloz

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Zoe Schneeweiss

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