U.S. to Slap Tariffs on EU, Jokowi Vows Reform: Eco Day

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

• The price of Scotch, French wine, cheese and other European exports is about to go up in the U.S. after the Trump administration announced new tariffs on billions of dollars of EU products starting Oct. 18.
  • French Finance Minister Bruno Le Maire says EU would respond “firmly” if the U.S. imposed tariffs following the WTO ruling on government aid to Airbus SE.
• Indonesian President Joko Widodo said he’ll introduce sweeping changes to labor rules by the end of the year and open up more sectors of the economy to foreign investment, delivering on some of the major reforms investors have been demanding
• Data published over the past few days paint an increasingly grim picture of how four months of unrest has sapped Hong Kong’s economy
• The world economy heads toward 2020 with growth slowing and risks elevated. Most major economies face a slowdown. Some will be unable to dodge recession. Bloomberg Economics offers recession probability models, and outlooks for the major economies.
• India’s worsening banking problems are adding a new layer of complexity to the central bank’s monetary policy as it prepares to cut interest rates again to spur economic growth.
• Germany’s five leading research institutes slashed their forecasts for economic growth, as manufacturers in Europe’s biggest economy struggle with waning global demand and lingering trade disputes.
• Fed Chairman Jerome Powell, who’s noncommittal about further interest rate cuts, is facing new pressure to make a third-straight reduction in response to weakening data, volatile markets and a continued bashing from President Donald Trump.

(Updates to add last bullet. A previous version was corrected to fix headline. )

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