China WTO Win, Suga’s Reform Plans, Australia Decouples: Eco Day

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

• The WTO ruled that the U.S. violated international regulations by imposing tariffs on over $234 billion of Chinese exports, but the outcome has failed to dissuade Washington’s ‘America First’ policy
• Yoshihide Suga, the man set to become Japan’s new prime minister later today, is sticking with Abenomics, but has set his sights on structural reforms for the debt-ridden nation
• Australia’s escalating tensions with Beijing have shown up its reliance on China trade and propelled a push to increase links with Asia’s other giant economy, India
• Judy Shelton, President Donald Trump’s controversial nominee for the Fed board who’s drawn significant criticism for policy views outside the mainstream, doesn’t yet have enough support in the Republican-controlled Senate to win confirmation
• The post-FOMC meeting press conference could be an opportunity for Chair Jerome Powell to incorporate an update to forward guidance, write Yelena Shulyatyeva, Andrew Husby and Eliza Winger
• Alternative data are becoming a permanent part of the toolkit for the Fed and Wall Street economists
• The pandemic is far from over, but Japan’s recovery is making headway, writes Yuki Masujima
• Bank of England officials are expected to lay the groundwork this week for yet more monetary stimulus as optimism over the U.K.’s economic rebound from the coronavirus pandemic fizzles and after the labor market took a turn for the worse in July
• U.S. manufacturing production rose in August by less than forecast, signaling a more moderate pace of progress for factories
• Joe Biden is calling on the federal government to offer debt relief to Puerto Rico as part of a broader plan to support the bankrupt U.S. territory as he works to appeal to Puerto Rican voters in Florida
• Argentina is expected to bounce back from its biggest contraction on record next year led by a jump in investment
• Income was surging for U.S. households and the national poverty rate fell to a 60-year low before Covid-19 upended the economy
• Here’s how China’s interest rate toolbox is evolving, and why

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