Dalio’s Changing World, Lasting Damage, Modi’s Billions: Eco Day

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

• Dalio, Gorman and Whitman opine on how the coronavirus will change the world
• Fed officials warned the U.S. economy will see a decline in the current quarter of historic proportions and risks the potential of massive bankruptcies that could create a lasting scar
• Indian Prime Minister Narendra Modi said his government will spend a total of 20 trillion rupees ($265 billion) to help the economy weather the fallout of the coronavirus pandemic
• The U.S. government’s effort to contain the economic damage from the pandemic saw a record $737.9 billion deficit in April alone
• Never let a crisis go to waste -- Australia’s clean energy industry is championing former White House Chief of Staff Rahm Emanuel’s catchphrase to push for a renewable-powered economic recovery
• The RBA, which last purchased debt on May 6, now owns close to 7% of the overall Australian government bond market
• Jerome Powell and his Fed colleagues are staring down the possibility of mass bankruptcies and long-lasting unemployment
• Challenges unlocking parts of the U.S. economy will prevent the type of surge that rapidly re-absorbs labor slack, writes Yelena Shulyatyeva
• Two ECB officials spoke out in defense of their bond-buying strategy a week after Germany’s top judges sparked fears of a political and financial crisis in the region by unexpectedly questioning its legality
• Norway plans to draw a record 382 billion kroner ($37 billion) from its wealth fund, forcing the world’s biggest sovereign investor to embark on an historic asset sale to generate cash
• Airports and roads have been emptied by the coronavirus pandemic but the Philippines will keep building them, banking on a $160-billion infrastructure plan to revive an economy slammed by the outbreak
• Malaysia’s economy seen to contract first time since 2009
• Paul Krugman says the liquidity trap has spread to emerging markets
• Lauren Carrick and Joe Harrison haven’t slept well in weeks. The two dancers on Celebrity Cruises’ Infinity say being held aboard ships for almost two months has left them emotionally drained

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