Trump's Deals, Clouds Over Swiss, Hungary Decision: Eco Day

(Bloomberg) --

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

• U.S. President Donald Trump said China wants to make a deal as he praised comments by the country’s chief negotiator for trade. He also said he is not “at this moment” considering fresh tariffs on imported autos and parts from Japan, with the Japanese saying they want to sort that issue out once and for all before agreeing to a final trade deal
• The U.S. president also signaled he’s open to making a dramatic shift in U.S. policy toward Iran
• Weaker global demand, a surging franc and a slump in Germany have come together to put a black cloud over the Swiss economy
• Hungary’s central bank will look past the weakest forint in more than a year and keep borrowing costs near zero as policy makers wait for action from the euro area
• A collapse in exports pushed the German economy to the brink of recession in the second quarter
  • Taxing the wealthy is becoming the latest sign of how Chancellor Angela Merkel’s already-frail coalition is drifting apart, adding to the political turbulence as the risks of a recession rise in Germany
• Fallout from the trade war is still reverberating, with South Koreans at their gloomiest in more than two and a half years and warnings that Singapore will see an increase in bad debt
• India’s government will receive a 1.76 trillion-rupee ($24.4 billion) windfall from the central bank, which it may use to cut borrowings and recapitalize banks to help spur economic growth
• The IMF’s record loan to Argentina was supposed to turn the page on a troubled history. It’s looking more like a case of déjà vu

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, Jiyeun Lee

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