China Power Shock, Fed Tapering Soon, World in 2050: Eco Day

(Bloomberg) -- Welcome to Tuesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the day.

• China’s energy crisis is shaping up as the latest shock to global supply chains as factories are forced to conserve power
• Fed officials reinforced the bank’s message that it would probably begin winding down its bond-buying program soon
  • Two regional Fed presidents are retiring following embarrassing revelations of stock trading last year, removing a couple of the bank’s more hawkish officials
  • Chair Jerome Powell said supply bottlenecks have been longer lasting than anticipated, and he expects inflation pressures to remain high in coming months before easing
• Bloomberg Economics has assembled our forecasts for growth out to 2050 across major economies. There’ll be a change in the drivers as China slows and India and Indonesia will make a bigger contribution
• Japan’s government said a projectile launched by North Korea on Tuesday may have been a ballistic missile
• China’s central bank vowed to ensure a “healthy property market” after Evergrande’s debt crisis roiled global markets
• Treasury Secretary Janet Yellen has declined to return calls from beleaguered IMF, chief Kristalina Georgieva since a scandal broke
• South Korea’s consumer confidence ended a two-month slide, suggesting consumers are putting the virus outbreak behind them
• For the winner of a party leadership vote to pick Japan’s third pandemic-era prime minister, a heavy lift awaits on the economy
• Bank of England Governor Andrew Bailey moved to reinforce the option that interest rates could rise as early as this year
  • The U.K. put the military on standby to help deliver supplies to gasoline stations to stem a widening crisis
• A new study published by the New York Fed offers a model for potential future stress tests on big banks for their exposure to risks from climate change, according to Morgan Stanley
• Zambian President Hakainde Hichilema named Denny Kalyalyaas central bank governor, returning the well-regarded economist to the job 13 months after his shock dismissal hit the currency and bonds
• If China has a favorite in the battle to be Japan’s next prime minister, it’s probably not Sanae Takaichi

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