Central Bank Politics, Taiwan Hit, Rate-Hike Conundrum: Eco Day

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

  • The world’s central banks are yielding to political pressures by emphasizing the risks of climate change when the more obvious threat to financial stability comes from future pandemics, former U.S. Treasury Secretary Lawrence Summers said
  • All the virus had to do was get through the border. Until this week, Taiwan’s Covid-19 containment appeared so effective that virtually no other defenses were put in place. Meantime, Taiwan pledged to try to keep the world supplied with chips during the outbreak
  • As Bank of England officials consider how to unwind emergency stimulus, markets have made up their minds about the first step
  • President Joe Biden’s administration plans to delay by two weeks a ban on new U.S. investments in certain Chinese companies
  • Thailand plans to borrow an additional 700 billion baht ($22.3 billion) to fund measures to counter its worst Covid-19 outbreak
  • U.S. housing starts fell by more than forecast, suggesting supply-chain constraints and rising costs continue to hold builders back
  • Euro-area businesses shed jobs at the start of the year after strict lockdowns pushed the economy into a double-dip recession
  • Business groups were unmoved by Treasury Secretary Janet Yellen’s call for U.S. companies to accept higher taxes in return for a huge public investment in infrastructure. Yellen is planning to travel to London for a June 4-5 meeting with her Group of Seven counterparts
  • France urged rich countries to follow its example and commit to reallocating part of their IMF special drawing rights to Africa
  • Bloomberg Economics looks at wage pressure in the U.S. economy as a harbinger of faster inflation
  • Isobel Lee has experienced some of the toughest fixed-income markets and she has two words of advice for those trying to navigate a messy global exit from the pandemic: “Be humble”

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