(Bloomberg) -- Welcome to Wednesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:
- China’s holdings of Treasuries dipped in May to the lowest in two years amid an escalation of the trade war. President Donald Trump reiterated he could impose additional tariffs on Chinese imports if he wants, while the WTO delivered a mixed judgment over U.S. sanctions on subsidized goods produced by Chinese state-owned enterprises
- Fed chief Jerome Powell said the central bank is “carefully monitoring” downside risks to growth and “will act as appropriate to sustain the expansion,” reiterating concerns last week that cemented expectations for an interest-rate cut later this month. Meanwhile, U.S. retail sales and factory output in June exceeded expectations
- U.K. wages grew at the fastest pace in 11 years in the three months through May and unemployment remained at its lowest rate since the mid-1970s. Yet the resolution foundation found U.K. income growth over the past two years has been the slowest in over half a century
- China’s efforts to shore up sagging economic growth are leading to a resurgence in indebtedness, underlining the challenge the government faces in curbing financial risk. Premier Li Keqiang acknowledged the economy is facing increasing downward pressure and said the government will adjust policies when appropriate
- Trade-war casualties are looking more like global slowdown victims. Exports from India and Indonesia slumped more than economists forecast in June, strengthening fears that nations beyond China and the U.S. are suffering from tariff battles
- As global monetary policy shifts direction, the Bank of Korea faces rising risks to economic growth but remains wary of record household debt and potential property bubbles
- Japan’s economy is less likely to suffer a painful whiplash from a sales tax increase scheduled for October, early sales figures for autos and apartments suggest
- Investor confidence in Germany’s economic outlook fell for a third month as persistent trade tensions weigh on growth momentum
- When Kevin Tsang tuned into Carrie Lam’s predawn press conference to condemn protesters who had ransacked government offices during a dramatic escalation of tensions over Hong Kong’s controversial extradition bill, he didn’t like what he heard. So much so, that the 25-year-old surveyor is now considering emigrating to Australia
- How much are sanctions hurting Kim Jong Un? North Korea’s economy hasn’t been in such bad shape since his father was battling floods, droughts and a famine that some estimates say killed as much as 10% of the population