China Decelerates, Reshaped Fed, Aussie Inflation Looms: Eco Day

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

  • China’s strong economic momentum eased slightly in May, as surging raw material prices squeezed profits, businesses turned more cautious and property and car sales underperformed
  • With only months left on their terms, Fed vice chairs Randal Quarles and Richard Clarida were reminded that their time in office may be drawing short. President Joe Biden is under explicit pressure to replace Quarles. Meantime, Clarida said officials may begin discussing the appropriate timing of scaling back their bond-buying program
  • From tropical island resorts to Outback whiskey makers to mountain ski fields to inner city coffee shops, Australian businesses are struggling to recruit the staff they need to service cashed up clients
  • They’re called the Sampo Generation: South Koreans in their 20s and 30s who’ve given up (po) three (sam) of life’s conventional rites of passage—dating, marrying, and having children
  • India could be spending more to help its population weather the economic devastation from the explosive second wave of Covid-19, according to Nobel Laureate Abhijit Banerjee
  • A closer look at Australia’s budget shows the government is charting a course toward strict fiscal discipline, writes James McIntyre
  • Investors will scrutinize forecast upgrades expected from the Bank of Korea for hints about when the bank is likely to end its run of record-low interest rates
  • Fonterra forecast strong milk prices for its farmers this season and next -- a shot in the arm for the New Zealand economy
  • European governments are increasingly confident a deal will soon be struck with the U.S. on a minimum global corporate tax to make multinationals pay more to the countries they operate in
  • The U.S. and Europe have risen in the rankings of the best places to be in the Covid-19 crisis as Asia starts to slip
  • When Japan won the 2020 Olympics in the wake of an earthquake and tsunami, then-Prime Minister Shinzo Abe said it would be a “tremendous opportunity for Tokyo and for Japan to shine at the very center of the world stage.” It’s just not turning out that way

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