China Risks Rise, ‘Cheap’ Fed Funding, IMF Prods Japan: Eco Day

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

• China’s banking sector grew riskier over the last year, with about 13% of the nation’s 4,379 banks and other financial firms considered “high risk” by the central bank
• Market participants leaped at the opportunity to lock in end-of year funding at Monday’s Fed repurchase-agreement operation, the first to be conducted with a 2020 maturity. The central bank boosted the size of its next operation in response
• The IMF called on Japan’s government and central bank to cooperate more in support of the economy
• Shawn Donnan combs through commentary in search of clarity on the status of U.S.-China talks in Terms of Trade
• The Bank of Israel extended a pause in interest rates even as it conceded political uncertainty risks damaging the economy
• Prime Minister Boris Johnson’s manifesto has left a question mark over the size of the fiscal boost, suggesting a rate cut being the Bank of England’s next move is more likely, writes Dan Hanson
• Germany’s economy looks to be carrying slightly more momentum, writes Jamie Rush, suggesting the growth outlook is now a little brighter
• Prime Minister Narendra Modi is finally attempting to overhaul India’s most controversial labor laws to attract investment and make it easier to do business
• When Philippine President Rodrigo Duterte took office in 2016, he promised $165 billion in spending to “build, build, build.” After a false start, he’s trying again
• For the first time since President Volodymyr Zelenskiy took power this year, more Ukrainians say the country is headed in the wrong direction than not
• Hong Kong’s public doubts China will soften its stance after local election rout

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

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Jason Clenfield

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