PMIs Spoil Truce Party, China Pain, Savior-Villain Fed: Eco Day

(Bloomberg) --

Happy Monday, Europe. Here's the latest news and analysis from Bloomberg Economics to help get your day and week started:

Markets celebrated a weekend thawing of Trump-Xi relations, but that hasn't won over economists, and probably won't reverse bets on a Federal Reserve interest-rate cut
- Morgan Stanley even lowered its growth forecast for the global economy
Riksbank Governor Stefan Ingves is likely to ignore the growing momentum for easing emanating from Frankfurt and Washington, for now
Russians are doing will less as the government squirrels away $100 billion
Factory hush. Sour manufacturing sentiment readings that swept Asia again in June are revealing the prevailing headwinds of weaker global growth; Japanese manufacturers reinforce the gloom in a separate survey
Back in Beijing. China's suffering PMI and the burden of existing U.S. tariffs keeps growth there under pressure, Bloomberg Economics analysis shows
Villain and savior. The Fed, believed to have killed some past economic expansions, is being relied upon to save the record-long current one
Tough talk. The Bank of International Settlements warned governments to get serious about growth and to redress policy imbalances with little central bank firepower remaining
Shock-low. Yields on Australia's 10-year government bonds just hit an all-time low, meaning each of the nation's bonds now yields less than the bottom of the central bank's inflation target range

To contact the reporter on this story: Michelle Jamrisko in Singapore at mjamrisko@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Karthikeyan Sundaram, Pradeep Kurup

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