Trump Flinches, U.S. Inflation Quickens, Somber Merkel: Eco Day

Michael Heath

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

President Donald Trump bowed to pressure, delaying the imposition of new tariffs on a variety of products until December. Tom Orlik explains why that makes little difference to the broader disputeA key measure of U.S. consumer prices unexpectedly accelerated in July in a broad-based advance, signaling inflation may be firming as the Fed debates whether to lower interest rates further. Yelena Shulyatyeva delves into the detailsChancellor Angela Merkel adopted a more somber tone on the state of Germany’s economy, saying a difficult patch lay ahead that the government may have to react toAlready hurting from the U.S.-China trade war, Hong Kong’s economy could be facing something much worse than a recession, writes Enda Curran in the latest edition of Terms of TradeAfter two sovereign defaults this century, small business owners in Argentina are well versed in navigating times of crisis. But even they were left floundering by the latest routWe forecast annual U.S. GDP growth at about 2% over the next decade as an aging population limits growth potential. A revival in productivity will pull in the other direction, writes Eliza WingerFormer Fed chief Alan Greenspan says he wouldn’t be surprised if U.S. bond yields turn negative. And if they do, it’s not that big a dealThe Swiss National Bank may have to do more than pump billions into foreign exchange markets to prevent the franc from appreciating to a damaging levelFurther north, one of the last interest rate hawks could make a stand this weekPrime Minister Boris Johnson’s staff talk about an imminent U.K. general election as though it were a fact. But it’s still not clear how that will happen

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Chris Bourke

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