China Breaks Down, Youth-Aged Divide, Tax Talks Tussle: Eco Day

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

  • As China battles to contain surging commodity prices, there’s a key factor giving the central bank some breathing room: the link between producer and consumer prices has broken down. Chang Shu reckons that China’s recovery is incomplete and imbalanced
  • Covid-19 hasn’t affected everyone equally. The virus has been deadliest for older people, but the pandemic-driven downturn wreaked havoc on the professional lives of many young people
  • Global negotiators attempting to rewrite tax rules for the digital era are tussling over a threshold for corporate revenue
  • President Joe Biden plans to amend a U.S. ban on investments in companies linked to China’s military this week
  • A Bank of Japan board member signaled a readiness to act if Fed tapering were to trigger spikes in the yen
  • India’s monetary policy makers will likely maintain interest rates at a record low for a sixth meeting, while retaining their dovish bias
  • China is countering a one-way market mentality that has helped fuel the yuan. Chang Shu says upward pressures are likely to prevail
  • Europeans are in for a costly summer that will test central bankers’ resolve on stimulus. Governing Council member Jens Weidmann said the bank could tweak its bond-buying programs to safeguard its balance sheet against the risks from global warming
  • The pace of the U.S. recovery picked up somewhat, sparking price pressures as businesses contended with worker scarcity and rising costs. The Fed plans to begin gradually selling a portfolio of corporate debt purchased through an emergency lending facility
  • Of all the issues that have roiled ties between China and the West since the pandemic emerged, none has been more sensitive in Beijing than questions about the origin of Covid-19

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