$3 Trillion Recovery, Japan Stimulus, Factory Sleepover: Eco Day

Welcome to Wednesday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the day:

  • A $3 trillion increase in global gross domestic product expected in the second half of 2021 will test “transitory” inflation view, writes, Bloomberg Economics’ Tom Orlik
  • Japanese Prime Minister Yoshihide Suga is likely to unveil another economic stimulus package worth at least $180 billion within the next few months. Meantime, the BOJ will likely consider raising its inflation forecast when it updates its quarterly economic outlook
  • As Vietnam battles resurgent Covid-19, it’s going to extraordinary lengths to protect its reputation in the global tech supply chain — with workers sleeping on factory floors to minimize disruption
  • China’s President Xi Jinping warned against politicizing the pandemic in a speech to political organizations from around the world that sought to show the ruling communist party’s broad foreign support
  • The U.S. is pressing Europe to reconsider plans for a new digital tax across the bloc in a dispute that threatens to undermine significant progress made recently toward a global corporate-tax agreement
  • China’s top economic planning body has been put in charge of devising a plan to cut the nation’s greenhouse gas emissions
  • Australia’s government reappointed Reserve Bank No. 2 Guy Debelle for another five-year term, setting him up to succeed Governor Philip Lowe when he eventually retires from the top role
  • In a risk scenario, the breakdown in OPEC+ talks could widen the oil supply deficit, sending prices up to $90 a barrel, writes Bloomberg Economics’ Maeva Cousin
  • Russia completed its plan to eliminate dollar holdings in its wealth fund as part of efforts to reduce vulnerability to U.S. sanctions.
  • Japan and the U.S. would have to defend Taiwan together in the event of a major problem, Deputy Prime Minister Taro Aso said

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