China Tightens Belt, Taiwan Back, Japan and Europe Cool: Eco Day
(Bloomberg) -- Happy Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help take you through to the weekend.
- There is more behind the lagging recovery in China’s consumer spending than impaired incomes -- people have tightened their belts, writes Chang Shu of Bloomberg Economics
- In 1990, Taiwan was a $166 billion electronics export powerhouse, while China had just opened its first McDonald’s. That was also the last year Taiwan’s growth outpaced its giant neighbor’s. Until 2020
- High-frequency data show stubbornly high infection rates and stricter containment mean major economies were slow to regain lost ground and some show signs of renewed weakness, writes Björn van Roye
- Asian governments’ subsidies for jobs and loans that helped prevent broader meltdowns are set to end in the coming months, which combined with continuing geopolitical strife between China and the U.S. has left many of the region’s wealthiest clans feeling anxious
- India will turn to Finance Minister Nirmala Sitharaman’s budget on Monday to see how she prioritizes spending. People familiar with the matter say the economy will expand 11% in the year starting April on the vaccine roll out and low interest rates and investment breaks
- New Zealand inflation is set to jump back to the central bank’s target earlier than expected, eroding the case for further monetary easing
- The U.S. economy downshifted in the final three months of 2020 as the pandemic battered the labor market and limited spending
- Hong Kong is on a difficult road to recovery after two years of unprecedented weakness triggered by political upheaval and Covid
- Euro area governments could boost the economy by 1.5% -- or next to nothing -- depending on how they spend stimulus. The bank is ready to use all tools necessary to stimulate inflation, Olli Rehn says
- Stephanie Flanders and Lucy Meakin talk with World Bank Chief Economist Carmen Reinhart in their weekly podcast on why policymakers shouldn’t confuse rebound with recovery
- The U.K.’s five main business lobby groups said British companies face “substantial” post-Brexit difficulties in trading with the EU
- The recent drop in short-term U.S. dollar borrowing costs has pushed one of the world’s key borrowing benchmarks to within a whisker of its record low and there is scope for it to fall further still
- President Joe Biden and his team staked out early opposition to Chinese territorial claims in a series of calls to Asian allies, as Beijing warned that trying to contain China was “mission impossible”
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