Turkey One-Man Rule, China Eases, Playing Trade Chicken: Eco Day
(Bloomberg) -- Welcome to Monday, Asia. Here’s news from Bloomberg Economics to help get your day started:
- Recep Tayyip Erdogan, modern Turkey’s longest-serving ruler, claimed a mandate to govern with sweeping new powers after a double victory in presidential and parliamentary elections.
- China will cut the amount of cash some lenders must hold as reserves, unlocking about 700 billion yuan ($108 billion) of liquidity. Tom Orlik notes the big takeaway is policy is now firmly tilted to supporting growth.
- Who will blink? The U.S. and China’s high-stakes game of economic “chicken” reaches a critical juncture in the next two weeks as the FT reports the Trump administration plans to restrict Chinese investments in U.S. companies and startups. Meantime, disputes between the U.S. and its closest trading partners are set to escalate.
- Shake it up. Central banks should accept that reversing crisis-era policy will be “bumpy” and shouldn’t delay doing so just for fear of upsetting financial markets.
- Australia’s record stimulus is being eroded as a surge in rates banks pay to borrow from each other threatens to push up the cost of credit.
- Japan shame. The children of single mothers are becoming an underclass.
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