(Bloomberg) -- Happy Friday, Asia. Here’s news from Bloomberg Economics to help get your day started:
- China prepares for protracted trade conflict: President Xi Jinping’s growth-supporting policy effort is gathering momentum, while President Trump is showing no signs of letting up
- China has a plan to retaliate against increases in U.S. tariffs regardless of the volume of goods targeted, while the IMF warns of the risking risks
- For all the speculation over possible Bank of Japan policy tweaks next week, the most important change for global bond markets may already be underway. Meantime, Japan’s heatwave is spurring spending on keeping cool
- Turkey’s economy -- already struggling with a run on the lira and a spike in inflation -- could now be Trumped as the U.S. president threatens sanctions over a detained American
- Some good news. The U.S. says it’s possible Nafta partners will reach a tentative agreement next month to revamp the pact, while orders placed with U.S. factories for business equipment increased for a third straight month. Still, Carl Riccadonna ponders whether this is as good as it gets
- India’s foreign exchange reserves may soon drop below $400 billion as it struggles to defend the rupee. Meantime, Abhishek Gupta reckons the Reserve Bank has already done enough to contain inflation despite a consensus that it will hike interest rates next month
- Mario Draghi can probably breathe a sigh of relief and enjoy his summer vacation as Europe’s economy looks in good shape. Theresa May can’t, after the EU tore up her post-Brexit customs plan
