‘Quantitative Failure,’ Fed and ECB, China Export Slump: Eco Day

(Bloomberg) -- Welcome to Monday Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the week:

• The era of central bank shock and awe is over. Interest rates are either already around historic lows or negative, spurring concerns they are doing more harm than good
• The Fed and ECB make their final monetary policy decisions of the year on Wednesday and Thursday, respectively. Both are expected to leave rates unchanged. It will also be the first meeting for Christine Lagarde as president of the ECB
• The unexpected drop in China’s exports in November shows why the nation wants a phase one trade deal -- U.S. tariffs are hurting. Total shipments to the U.S. fell 23% from a year earlier
• Hong Kong saw its biggest pro-democracy protest in months on Sunday, signaling more unrest to come in 2020 as the movement that began in June shows its staying power
• The U.S. jobs report walloped consensus expectations, exceeding even the most bullish forecast, writes Carl Riccadonna. Bloomberg Economics lowered its projection of the 2020 year-end unemployment rate to 3.3% from 3.4%
• Singapore has a property glut that could take years to clear, threatening to kill a nascent price recovery amid an already uncertain economic outlook
• President Donald Trump’s decision to reinstate tariffs on Brazilian steel and aluminum poured cold water on expectations the U.S. would soon resume imports of fresh beef from Brazil
• French Finance Minister Bruno Le Maire urged the U.S. to support a global overhaul of how the digital economy is taxed, arguing the French digital levy doesn’t discriminate against the U.S.
• India’s parliament is set to approve legislation preventing Muslim migrants from neighboring countries receiving citizenship -- the next step in Prime Minister Narendra Modi’s hardline Hindu nationalist program
• Trump downplayed Pyongyang’s latest missile tests, saying North Korean leader Kim Jong Un “is too smart and has far too much to lose, everything actually” if he acts in a hostile way toward the U.S.
• Saudi Arabia is dropping gender rules for restaurant entrances, ending the requirement that restaurants have separate entrances: one for families and women and another for unaccompanied men

To contact the reporter on this story: Alexandra Veroude in Sydney at averoude4@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Michael Heath

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