Biden’s ‘New Paradigm,’ Digital Yuan, Korean Optimists: Eco Day

Happy Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend.

  • President Joe Biden said he will unveil his long-term economic rejuvenation plan next week, promising increased support for the middle class and a major ramp-up in investment and infrastructure
  • China’s central bank said its planned digital currency will co-exist with technology platforms like Ant Group Co.’s Alipay and Tencent Holdings Ltd.’s WeChat Pay, which currently dominate the market
  • South Korean consumers turned optimistic for the first time since the pandemic struck early last year
  • The Suez Canal blockage is forcing container carriers and other vessels to weigh costly and time-consuming voyages around Africa that threaten to destabilize the fragile underpinnings of global trade
  • Fed Chair Jerome Powell​ said he would wait until the economy has “all but fully recovered” to pull back the extraordinary monetary support. History says bond traders are terrible at timing Fed liftoff
  • China faces a range of challenges in 2021. Reaching the official growth target of over 6% won’t be one of them, writes Chang Shu
  • The ECB will look at drivers behind changes in financing conditions and the speed of shifts, and won’t always wait for scheduled meetings to act, Executive Board member Isabel Schnabel said
  • The Swiss National Bank softened its language on the need to intervene in currency markets to protect the economy
  • Brazil’s central bank defended plans to remove only some stimulus
  • President Joe Biden pledged to outspend China on innovation and infrastructure to prevent it from overtaking the U.S.

©2021 Bloomberg L.P.

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