Trade Deal Dial-Back, RBA's Aussie View, Powell on Put: Eco Day

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

• Donald Trump's top trade negotiator is dialing back expectations for a sweeping trade deal with China. Robert Lighthizer said the U.S. is pushing for a deal that includes “significant structural changes” to China's economic model
• The Reserve Bank of Australia's estimates of the exchange rate's fair value show the currency last year fell further than the central bank expected as the economy slowed
• Jerome Powell, asked if there's a “Powell Put” in financial markets, said the Fed will pay attention to financial-market volatility if it threatens economic stability
• Meanwhile, as Trump takes victory laps for slashing regulations on banks and other companies, Powell says it's hard to prove the effort has boosted economic growth. He also said the Fed won't return to a “very small” balance sheet
• After a month-long delay due to the federal shutdown, data today will show just how much steam the U.S. economy lost in the fourth quarter -- and what it all means for 2019. Yelena Shulyatyeva says while the economy stumbled at the end of 2018 as market turbulence hurt confidence, this impact should not be sustained
• As China's slowdown hits home, we interview people from middle class families across 12 cities in nine provinces that reflect a cross-section of China's economy
• Weakness in inflation, exports and jobs growth means the Bank of Korea is almost certain to keep interest rates at 1.75 percent today. Meanwhile, Trump and North Korean leader Kim Jong Un will meet again this morning in the final day of their summit in Hanoi

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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