Trump's Trade-War Toolkit, Shrinking U.K., ECB Outlook: Eco Day

(Bloomberg) --

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

• The trade war’s August escalation has spooked markets -- and central banks -- around the world. The bad news, though, is that President Donald Trump’s arsenal is far from exhausted
• Declining costs of materials used by America’s manufacturers may be starting to help diminish the impact of tariffs for some as the U.S.-China trade war rages on
• Britain succumbed to its first economic contraction since the aftermath of the financial crisis, raising the stakes for Boris Johnson’s government as it seeks an imminent exit from the European Union
  • Meanwhile, the U.K. government delayed its full spending review to 2020 and will instead hold a one-year exercise so departments know their budgets for the next financial year
• European Central Bank officials trying to make their sub-zero monetary policy more palatable may need to be imaginative if they want it to reach the whole euro zone
• German exports registered their steepest annual decline in three years, highlighting the plight of a manufacturing sector suffering from global trade conflicts
  • One of Europe’s gloomier takes on the Chinese economy is built on the assumption that growth won’t see a meaningful pickup and trade issues are probably here to stay
• Australia’s central bank reiterated it’s prepared to cut interest rates further as subdued household income and consumer spending mean inflation will take longer to return to its elusive target
• Turkey’s central bank made the biggest overhaul to its senior management in recent years, a month after President Recep Tayyip Erdogan unexpectedly fired the bank’s governor

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, Brian Swint

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