Blocked Canal, China’s U.S. Windfall, Turkey’s Governor: Eco Day

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

  • Tugs and diggers have so far failed to dislodge a massive container ship stuck in the Suez Canal. When you can’t shift a ship blocking a passage vital to world trade: call the salvage guys. The snarling of the waterway is also a sign of what’s ahead
  • The U.S. fiscal boost will bring huge spillovers to the world economy, especially China, the biggest exporter. About $360 billion of the stimulus package will be spent on imports, according to Allianz SE, with Chinese exports likely to increase by $60 billion over 2021-2022
  • Turkey’s new central bank governor promised to stick to the single interest-rate framework adopted by his predecessor
  • The Biden administration won’t demand that its allies make a choice between the U.S. and China, Secretary of State Antony Blinken said
  • Fed Chair Jerome Powell said the relatively muted forecast for lower unemployment this year was actually disguising “highly desirable” labor market gains
  • Financial markets are obsessed with where inflation is headed. Statisticians are struggling to figure out where it’s at
  • China’s services sector improved only marginally against a strong rebound in the broader economy, a sign of still weak consumption
  • Global warming may force central banks to keep interest rates low
  • The Philippines’ central bank is set to leave its key rate unchanged
  • In Turkey, the central bank governor’s recent firing is just the latest hit to the lira, Bloomberg Economics says in its research wrap
  • The U.K. economy could see a “rip roaring” recovery even if consumers spend just a bit of the additional savings, according to Bank of England Chief Economist Andy Haldane
  • The world really doesn’t need more toilet paper problems. But unfortunately the biggest producer of wood pulp is warning that the global crunch in shipping containers could start creating supply snags

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