$10 Trillion at Risk, Inflation Fears, G-20 Challenge: Eco Day

(Bloomberg) -- Welcome to Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend:

• Coronavirus threatens global growth through two channels, as China’s consumers stay home and its factories stay shuttered, writes Tom Orlik. To gauge the severity, Bloomberg Economics is tracking mentions of the virus: close to 180 firms -- with a combined market capitalization of more than $10 trillion -- have spoken about the effects
• Governments are starting to use more fiscal firepower to boost economies, though it may not be happening fast enough for central bankers. Tom Orlik says G-20 finance chiefs confront a dreary and deteriorating picture on global growth that raises two questions
• Shortages of goods and food triggered by the coronavirus outbreak has raised the specter of faster inflation across Asia
• The airline industry expects the first annual decline in global passenger demand in 11 years, after tallying the initial impact of flights canceled because of the coronavirus outbreak in China
• Fed No. 2 Richard Clarida took issue with suggestions investors expect the central bank to cut interest rates in the middle of this year as he called the economy fundamentally sound
• The boom in China’s credit in January is clearly a good thing -- the economy needs all the support it can get with the coronavirus clobbering activity. It’s probably also a bit lucky, and clearly set to weaken sharply, writes Chang Shu
• Fannie Mae and Freddie Mac are expected to retain “limited and tailored government support” after they are freed from U.S. control, Treasury Secretary Steven Mnuchin said in a letter to lawmakers
• German businessman Peter Fenkl always assumed 2020 would be an uphill battle. But less than two months into the year, it’s clear the challenge is much bigger
• The EU‘s first high-level meeting since Brexit risks ending in acrimony
• Swedes already use less cash than anyone else. Now, the central bank is planning a landmark test based on blockchain technology in the hope of introducing an official electronic krona
• Bank Indonesia shrugged off rupiah vulnerability and incomplete monetary transmission, extending its easing cycle with another rate cut Thursday. A further reduction in March can’t be ruled out, writes Tamara Mast Henderson
• Mauritius named its youngest central bank governor yet and appointed a woman as second deputy governor in an overhaul of the top management of the institution
• They’re places that encapsulate Singapore: Gardens by the Bay, with its gigantic artificial trees and botanical conservatories dripping with orchids; Lau Pa Sat, the colonial-era food hall beckoning with chili crab and chicken rice; Jewel Changi Airport, the futuristic shopping and entertainment complex straight out of “Crazy Rich Asians”

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

To contact the editors responsible for this story: Paul Jackson at pjackson53@bloomberg.net, James Mayger

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