China’s Cash Injection, RBA’s Nightmare, Gloomy Titans: Eco Day

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Welcome to Monday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help get your week started:

• A $22 billion injection into Chinese markets won’t be enough to prevent stocks and currency falling, but it may ease a global sell-off sparked by the spread of coronavirus. Chang Shu reviews the policy support measures and what to expect next
• Australia is set to keep interest rates unchanged as policy makers keep searching for signs that prior stimulus is encouraging households to spend. Hovering over the meeting is the near-term economic threat of a viral-induced slowdown in China
• Two of the most recognizable names in U.S. manufacturing are signaling more pain lies ahead for the global economy
• Rising labor costs will eventually reignite inflation in the euro zone and the ECB is on track toward its goal, according to the institution’s chief economist, Philip Lane
• Boris Johnson plans to say he’s prepared to quit talks over the U.K.’s future trade relationship with the EU if he doesn’t get what he wants. Twelve hours after the U.K. formally left, the EU’s poorer members gathered in an old Franciscan convent in Portugal to rally against a looming budgetary shortfall partly due to the loss of British cash
• Since taking power Chinese President Xi Jinping has effectively made himself “chairman of everything.” The coronavirus scare is showing all the risks involved with that strategy
• In Hong Kong, the hits just keep coming. GDP data today is likely to show activity contracted again in the fourth quarter
• India’s budget is likely to fail on both fronts it probably hoped to address -- reviving the economy from its worst slump in over a decade and trying to contain the widening budget gap, writes Abhishek Gupta
• Over in Vietnam, firms are finding themselves increasingly squeezed between the world’s two economic superpowers
• Kuwait boasts a female finance minister and, uniquely for a Gulf monarchy, an elected legislature. But acrimony between lawmakers and the appointed government has resulted in eight administrations in as many years, and the fallout on fiscal policy is becoming harder to contain
• Here’s a story about one ordinary day in an extraordinary global economy
• Thanks to the coronavirus outbreak, working from home is no longer a privilege, it’s a necessity

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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