China Theft Crackdown, Fed Inequality, Negative Rates: Eco Day

(Bloomberg) --

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

• China said it will raise penalties on violations of intellectual property rights in an attempt to address one of the sticking points in trade talks with the U.S.
• From Bernie Sanders to Warren Buffett, almost everyone says U.S. inequality is a problem. In 2019, big ideas about how to solve it have been in the air. One of the most unlikely solutions is emerging from a far-flung corner of the Fed
• After half a decade of negative interest rates, one of the biggest Nordic pension funds is wondering whether this is just the beginning
• China can become a fully developed economy that doesn’t produce any carbon emissions by mid-century, a group of energy executives said in a report
• ECB chief economist Philip Lane said policies are “in good shape” for the baseline scenario of improving conditions over the next one or two years, but further rate cuts can’t be ruled out. Switzerland has additional room to cut its already negative rate, the central bank’s chief economist said
• It’s a big week for the U.S. consumer, and not just because of the annual retail extravaganza of Black Friday
• Thailand is prepared to use monetary policy if economic growth disappoints, central bank chief Veerathai Santiprabhob said
• Israel’s most contentious rate decision in half a decade is dividing economists at some of the world’s biggest banks
• Demand for BOJ reserves shows growth in Japan arbitrage trading, as this chart illustrates
• Italy may be willing to compromise on its holdout against a German plan for further integration of the EU’s banking system that includes setting limits on holdings of sovereign debt
• London and Hong Kong have been stifled by ongoing political tension. But for real estate, the cities face different futures, Christie’s says
• Trade is the easy part. It’s what comes next that should scare you going into 2020 and beyond, writes Shawn Donnan in Terms of Trade

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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