Global Contagion Risk, Germany Stutters, Scotch Trade: Eco Day

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

• The rising death toll from coronavirus, infections spreading across the world and Beijing’s extension of the Lunar New Year prompted Tom Orlik to think through the economic risks for China, and the potential for global spillovers
• German business expectations took a surprising turn for the worse, underscoring the challenges the economy faces in exiting a protracted slowdown. Yet the government now sees economic growth of 1.1% this year, up from a previous projection of 1%
• Bourbon and scotch makers that have been flirting with globalization have found a common enemy in tariffs, writes Shawn Donnan
• China’s deadly virus outbreak is threatening the outlook for casino operators in the world’s largest gambling hub
• Japanese Prime Minister Shinzo Abe’s upcoming choice of candidate to join the central bank board could shed light on his current thinking on the importance of achieving a stubbornly difficult inflation goal
• The fate of one of the Bank of England’s trickiest interest-rate decision in years is in the balance, sharpening the focus on the nine policy makers involved
• ECB stimulus has contributed to “very elevated” asset prices that raise the prospect of a sudden market drop, Executive Board member Yves Mersch said
• Agriculture Secretary Sonny Perdue became the latest American official to face EU complaints about U.S. threats to global trade rules and punitive tariffs on EU farm goods
• Sales of new U.S. homes cooled for a third month in December, signaling a potential pullback to come after purchases climbed to some of the best levels in more than a decade
• President Rodrigo Duterte is cracking down on some of the Philippines’ biggest businesses, pushing a populist agenda that’s endearing him to his supporters while putting off investors
• Brazil economists lowered their forecasts for both the key rate and inflation after activity data disappointed and central bank President Roberto Campos Neto said he’s comfortable with consumer prices
• A wave of innovation may help lift the global economy from the doldrums, says Joe Davis, global chief economist at Vanguard Group
• Every Arab republic bar one has witnessed popular protests since 2011. Will they lead to better states and stable economies? The odds for success are low, writes Ziad Daoud

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