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China Reform 2.0, No-Deal Brexit Recession, Fed Split: Eco Day

Published 27/09/2019, 01:53
© Reuters.  China Reform 2.0, No-Deal Brexit Recession, Fed Split: Eco Day

(Bloomberg) -- Welcome to Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to take you through to the weekend:

  • China’s unprecedented growth is giving way to a grinding slowdown. What worked to raise prosperity yesterday no longer works as well today -- and the country needs a new approach, writes Chang Shu. Here’s why this year’s National Day means so much to China
  • An election is brewing in Britain. We expect it to return a government with a mandate for a hard Brexit, which they will deliver in early 2020. A recession, above-target inflation and interest-rate cuts by the BOE are likely to follow, writes Dan Hanson
  • The Fed’s “dot plot” of rate projections shows plenty of disagreement among members over where monetary policy should go in the next three months. Here’s a summary of recent remarks by Fed policy makers. Meantime, income inequality in America widened “significantly” last year
  • While Japan’s economy is losing momentum, the risk of recession remains low, explains Yuki Masujima
  • ECB Chief Economist Philip Lane said there’s still room to cut rates further and described stimulus that split policy makers as “not such a big package.” The French government’s latest budget marks a shift that strains the public finances and gives the economy a boost as the outlook darkens
  • A big advantage of President Donald Trump’s pursuit of bilateral trade negotiations like his limited agreement this week with Japan is that it largely avoids the need to run those deals through Washington’s legislative gauntlet
  • Argentine presidential candidate Alberto Fernandez indicated he would tackle the nation’s debt problem by adopting a strategy similar to that of Uruguay
  • Mexico’s central bank cut borrowing costs by a quarter point for the second straight month amid moribund economic growth
  • Warring visions of how to handle the effects of climate change on the global economy are being cast in sharper relief, adding to a basket of growing challenges that are dividing policy makers
  • Saudi Arabia will drop its strict dress code for foreign women as it seeks to lure holidaymakers and the spending that could help develop the kingdom’s economy away from its reliance on oil

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