China’s Economy, Inflation Pressures, Brainard’s Views: Eco Day

(Bloomberg) -- Welcome to Monday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the week.

• China’s V-shaped economic rebound is fading faster than expected
  • A rally in China’s sovereign bonds, spurred by the central bank’s liquidity boost, is fading
• Global inflationary pressures show few signs of moderating and more central banks are scrambling to temper them
  • Minneapolis Fed President Neel Kashkari said the U.S. central bank shouldn’t overreact to elevated inflation
  • Treasury Secretary Janet Yellen said controlling the Covid-19 virus in the U.S. is the key to easing inflation
  • Morgan Stanley economists are sticking with their prediction that the Fed won’t raise rates until 2023
  • Inflation is soaring across the euro area, but it’s also diverging significantly, complicating the ECB’s task
• Fed Governor Lael Brainard’s interview for the U.S. central bank’s top job has heightened focus on her views on inflation and jobs
  • Bloomberg Economics analysis suggests Fed tapering could result in an increase in U.S. rates of about 40 basis points
• A new Cold War could cost China 6% of GDP, while the U.S. would gain, Bloomberg Economics estimates
• Warning signs are starting to flash at the regulators of the $22 trillion U.S. Treasury market, which is being whipsawed just as the Fed begins pulling back from $80 billion-a-month buying spree
• U.S. consumer sentiment unexpectedly collapsed in early November as Americans grew increasingly concerned about rising prices
• An unprecedented number of Americans quit their jobs, highlighting how persistent churn is undercutting efforts to fill vacancies
• Negotiators from almost 200 countries clinched a deal that seeks to keep the most ambitious goal of the Paris Agreement alive
  • How China’s deal with U.S. helped avert COP26’s collapse

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