U.S. Mulls Tariff Freeze, Italy Debt, Robots in Action: Eco Day

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

• The U.S. is willing to suspend the next round of tariffs on an additional $300 billion of Chinese imports while Beijing and Washington prepare to resume trade negotiations, people familiar with the plans said
• ECB President Mario Draghi is once again testing the boundaries of the law in his efforts to lift the euro zone out of its economic malaise
• It’s rate decision day in Iceland and the Czech Republic
• Short shrift. Italy may be days from becoming the first country to be disciplined by the European Union for failing to rein in its debt
• Stronger case. Federal Reserve Chairman Jerome Powell said the downside risks to the U.S. economy have increased recently, reinforcing the case among policy makers for somewhat lower interest rates. Separately, Federal Reserve Bank of St. Louis President James Bullard said it’s good time for an insurance rate cut; 50 basis point cut would be overdone
• Jobs bot. Robots are on track to wipe out almost a tenth of the world’s manufacturing jobs with the brunt borne by lower-income areas in developed nations, Oxford Economics says.
• Caution ahead. China’s economy saw a modest improvement in the second quarter but the risks ahead look more serious, according to the quarterly Beige Book report
• Cut street. New Zealand’s central bank said a further reduction in interest rates may be needed, after holding rates at record low; RBNZ is likely to cut at its next meeting in August, says Bloomberg Economics’ Tamara Henderson

To contact the reporter on this story: Jiyeun Lee in Hong Kong at jlee1029@bloomberg.net

To contact the editors responsible for this story: Malcolm Scott at mscott23@bloomberg.net, Karthikeyan Sundaram, Devidutta Tripathy

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