Trade War on Hold, G-20 Details, Manufacturing Woes: Eco Day
(Bloomberg) -- Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your week started:
- The U.S.-China trade dispute is on hold for at least three months, with both sides agreeing to discuss their issues and China saying it will boost U.S. imports. But the truce does little to bridge a vast divide and China will likely keep stimulus pumping into 2019. Tom Orlik parses the details of what we know at this stage
- Leaders of the world’s largest economies agreed the rules that underpinned global trade for decades are flawed, in a statement the White House claimed as a win for Donald Trump’s protectionist agenda
- The trade truce between Trump and his Chinese counterpart Xi Jinping may help prop up growth in the euro area, with Commerzbank saying the bloc’s 2019 growth trajectory depends “above all” on China.
- Italian manufacturing shrank for a second straight month in November, further bad news for the economy amid a budget battle that’s undermining confidence.
- Meanwhile, factory conditions in the tech-heavy Asian economies of South Korea and Taiwan took a dive in November as slowing smartphone demand and U.S.-China trade tensions hit home
- There was better news in the U.K., where manufacturing growth recovered from a 27-month low in November as domestic new orders picked up and firms built up stocks to protect against Brexit risks.
- When European Central Bank policy makers cast a secret ballot to select a new supervisory head, it was with their future leadership on their minds, according to euro-area officials familiar with the matter.
- Finally, read Stephanie Flanders’s take on why the economy is in search of a fresh source of fuel
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