Asia Real-Time Hit, U.S. CPI Hot, New Zealand Warning: Eco Day

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

• Asia is already showing a hit from the surging delta variant of Covid-19 as consumers stay at home and airplanes idle on the tarmac
• U.S. consumer prices probably jumped again in July, with little sign that households are balking at paying more for goods and services
• New Zealand’s central bank warned Westpac Banking Corp. for failing to report certain transactions and signaled increased scrutiny. Meantime, health advisers say New Zealand should complete its vaccine rollout before starting to re-open its border next year
• The Senate passed a $550 billion infrastructure plan that represents the biggest burst of spending on U.S. public works in decades
• The Philippine central bank said its government bond holdings rose almost 400%, and outlined a strategy of carefully reducing purchases
• Indian firms are running out of room to absorb rising raw material costs, which could force the central bank to unwind stimulus faster-than-expected. Meantime, foreign banks have been forced to unwind profitable currency trades at the behest of India’s central bank
• Sentiment among Japanese merchants ticked up last month as the Olympics encouraged spending on food and drinks for home viewing
• Highlights of Bloomberg Economics’ research wrap include U.S. staff shortages, the U.K.’s inflation outlook and Brazil’s rate path
• The Swiss National Bank may say it, and valuation metrics may show it, but traders are unconvinced the franc has gotten too strong. Meantime, Switzerland’s property market is close to a bubble
• Inaction could be a powerful option for Bank of England officials looking to scale back stimulus and shrink their swollen balance sheet
• Investor confidence in Germany’s recovery dropped to the lowest level since late last year after a rise in infection rates. Still, Germany’s economy is on track to receive an extraordinary boost after BioNTech SE raised its Covid-19 vaccine sales forecast
• As China investors search for clues about which industries might be next in President Xi Jinping’s crackdown, they’re also pondering another question: Why now?

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