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China Growth Sub-3%, Fed Rate Risks, Wargaming Pandemic: Eco Day

China Growth Sub-3%, Fed Rate Risks, Wargaming Pandemic: Eco Day

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

  • Economists are rushing to downgrade forecasts for China’s growth. The latest numbers point to 1Q GDP expanding 3% year-on-year or less, and contracting quarter-on-quarter, writes Chang Shu
  • Wall Street is increasingly betting the Fed may have to cut interest rates again as virus jitters roil financial markets. But Fed No. 2 Richard Clarida said it is “still too soon” to say whether the coronavirus outbreak will cause a material change in the U.S. outlook
  • The worrying prospect that the coronavirus outbreak could become the first truly disruptive pandemic of the globalization era is renewing doubts over the stability of the world economy
  • Hong Kong can’t catch a break. January was supposed to see sagging exports from its huge port start to bottom. Instead, it slumped and by a lot more than expected, writes Enda Curran in Terms of Trade
  • The acceleration of the coronavirus outbreak over the past week is putting downside pressure on forecasts for Southeast Asian economies, leading policy makers to unveil support measures
  • The Chinese government announced a raft of measures including cheap credit and targeted tax cuts to small firms and the private sector, in its latest move to support the economy
  • South Korean manufacturers’ confidence slumped the most in five years as coronavirus fears threaten a nascent recovery
  • A sharp pickup in India’s business activity in January signaled momentum returning, though a strong recovery still looks unlikely as consumer demand is subdued
  • The Bank of Canada is laying the groundwork to introduce a digital currency, should the need emerge, Deputy Governor Tim Lane said
  • Mexico faces growing risks to funding its current account deficit as weak growth and uncertainty over government policies deter foreign investment, according to Goldman Sachs
  • World Bank President David Malpass said global economic growth in the first half is likely to fall short of the 2.5% pace that the lender has forecast for 2020. Meantime, worldwide trade actually suffered its first full-year drop since the 2009 global recession
  • The virus panic is devastating Chinatowns from New York to Sydney
  • Singapore has a reputation for planning ahead. When it comes to climate change, it’s planning for the worst

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

To contact the editors responsible for this story: Paul Jackson at pjackson53@bloomberg.net, Alexandra Veroude

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