Trump Weaponizes Uncertainty, Powell Tilt, ECB Warning: Eco Day

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

  • U.S. President Donald Trump has used tariffs as one of his most powerful tools for fighting his trade wars, but he’s also wielding leverage with another weapon: uncertainty
  • On the same topic, trade friction is the biggest risk now and the Bank of Japan is closely monitoring its effects, Governor Haruhiko Kuroda told lawmakers. Still, Bloomberg Economics’ Yelena Shulyatyeva reckons the drag from a stronger dollar will drive 2019’s U.S. export outlook, not tariffs
  • On the policy front, Japan appears determined to embrace a leading role in making international trade rules, Economy Minister Toshimitsu Motegi said at Bloomberg’s The Year Ahead conference in Tokyo
  • Meanwhile, here’s why Federal Reserve Chairman Jerome Powell wants to avoid being tagged as the fool in the shower
  • Staying in central banks, Bank of England Deputy Governor Ben Broadbent says helicopter money wouldn’t be an effective policy to help policy makers fulfill their remit in the event of a disorderly Brexit
  • The European Union’s overhaul of bank capital rules shows it’s forgetting some of the lessons of the financial crisis, according to Daniele Nouy, head of the European Central Bank’s supervisory arm
  • German factory orders unexpectedly rose for a third month, underpinning growth momentum after Europe’s largest economy contracted in the third quarter

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