China Bubble Trouble, IMF Lifts Forecast, Fink Net-Zero: Eco Day

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

  • A chill swept through Chinese financial markets after the central bank withdrew cash from the banking system and an official warned about asset bubbles. Still, Governor Yi Gang said China won’t exit “prematurely” from its supportive monetary policies. China is expected to post record GDP growth, as this chart shows
  • The IMF raised its forecast for global growth this year, betting on the rollout of coronavirus vaccines and more fiscal stimulus
  • BlackRock Inc. Chief Executive Officer Larry Fink said companies should disclose plans for how their business models will be compatible with a net-zero economy by 2050
  • The U.S. must take “aggressive” steps to combat China’s “unfair” trade practices while also investing to bring manufacturing back to the country, said Gina Raimondo, commerce secretary nominee
  • ECB policy makers have agreed to look deeper into the euro’s appreciation against the dollar since the start of the pandemic, focusing on whether it’s driven by differences in stimulus policies
  • Fed Chair Jerome Powell heads into what could be his last year determined not to repeat the mistake he made when he was a neophyte monetary policy maker. Carl Riccadonna says the FOMC is well positioned to hold a steady course for several quarters
  • The global services sector remained depressed in the third quarter of 2020, lagging a full recovery in goods trade, the WTO says
  • As the U.S. suffers through another pandemic, it’s tempting to ask whether history will repeat itself. Once the virus passes, will the 2020s roar the way the 1920s did?

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