Addicted to Debt, China Ready for Downturn, RBA Easing: Eco Day

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

• Zombie companies in China. Crippling student bills in America. Sky-high mortgages in Australia. Another default scare in Argentina. The answer? Yet more debt
• China’s monetary policy should remain prudent with room for adjustment as a prolonged downturn in the global economy is likely, central bank Governor Yi Gang said
• Australia’s central bank chief Philip Lowe opened up the prospect of two interest rate cuts rather than the widely-assumed one more when he set parameters for adopting unorthodox policy
• Hong Kong businesses that have managed to stay afloat through almost six months of sometimes violent protests are looking to the upcoming Christmas and Chinese New Year period with a mixture of hope and trepidation
• When ECB chief Christine Lagarde is quizzed by European lawmakers on Monday, her plans for the biggest reassessment of the institution’s mission in 16 years is likely to play a prominent role
• The focus will be firmly on U.S. workers this week as the world’s biggest economy releases its latest jobs numbers
• BOE Governor Mark Carney has accepted the role of special envoy for climate action and finances, UN chief Antonio Guterres said. Meantime, the EU intends to challenge the U.S. and China on climate-change targets
• China’s government wants tariffs to be rolled back as part of the phase one trade deal with the U.S., Global Times said in a tweet on Sunday, citing unidentified people in Beijing
• The Turkish economy likely continued on its recovery path in the third quarter as banks doling out credit supported growth and industrial output expanded
• China will encourage local governments in the Yangtze River Delta around Shanghai to jointly set up investment funds for major infrastructure projects and ecological development, according to a plan issued by the state Xinhua news agency
• Not all money laundering scandals are equal

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

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

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