China Blueprint, Merkel Breakthrough Deal, Fed Toolkit: Eco Day

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

  • When Chinese Premier Li Keqiang delivers his annual report on economic policy this Friday, there’s a chance that the document’s most important number will be missing
  • German Chancellor Angela Merkel and French President Emmanuel Macron agreed to support a 500 billion-euro ($546 billion) aid package to help the EU recover from the coronavirus pandemic
  • Jerome Powell said he’s ready to use the Fed’s full range of tools and leave the key rate near zero until the economy is back on track
  • Bloomberg spoke to Harvard’s Carmen Reinhart and Kenneth Rogoff who argue this time really is different
  • China imposed anti-dumping duties on Australian barley that could wipe more than half a billion dollars in value off the industry
  • Indonesia’s central bank is expected to cut its key rate for the third time this year as recent gains in the currency allow policy makers to shift their focus to bolstering the economy
  • Australian’s successful ‘suppression strategy’ and substantial fiscal support have lifted consumer sentiment. But confidence may be tested if aid is withdrawn too early or the economy reopens too quickly, writes James McIntyre
  • The Bank of England’s debate over negative rates stepped up a gear with one policy maker saying they’ve had a positive effect elsewhere
  • Nobel laureate economist Joseph Stiglitz said the U.S. will be stuck with double-digit unemployment for an extended period without more and better-targeted government support for the battered economy

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