Trump’s next trade fight, China stimulus, US jobless

Japan to hold bilateral trade talks with US President Donald Trump. (Reuters pic)

WASHINGTON: Japan is finally stepping into the ring for a fight it had managed to dodge for more than two years: bilateral trade talks with US President Donald Trump.

A US$300 million plan to turn a country town famous for fine porcelain into a major tourist destination gives clues as to how China’s new approach to stimulus works in reality.

Federal Reserve officials are spelling out that there are high hurdles to raising interest rates while inflation continues to undershoot their 2% target and risks to the economy abound.

A rebound in oil prices poses a risk to India’s benign inflation expectations that last week allowed the central bank to deliver its second rate cut of 2019.

Filings for US unemployment benefits unexpectedly dropped, falling to the lowest level since October 1969 and suggesting little sign of cooling in a tight labour market.

New World Bank President David Malpass said he’ll pursue a “constructive” relationship with China as the development lender reduces funding to the world’s second-largest economy. Stephen Moore, a proposed nominee for the Federal Reserve, said he’s planning to challenge the belief inside the US central bank that growth causes inflation.