Dollar Status Doubt, China Rebound Cools, Fragile World: Eco Day

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

  • Goldman Sachs put a spotlight on the suddenly growing concern over inflation in the U.S. by issuing a bold warning that the dollar is in danger of losing its status as the world’s reserve currency
  • China’s economic recovery lost some upward momentum in July, with the effect of stronger market sentiment damped by muted demand in the real economy
  • Meantime, the world economy’s fragile recovery is in danger of stalling, writes Enda Curran
  • Joe Biden proposed a series of steps designed to bridge racial economic gaps in the U.S. and promised he would work toward a more diverse Fed board that would help minorities access funds and economic development
  • An improvement in India’s exports and business activity in June signaled the worst may be over for the economy
  • South Korea’s consumer confidence improved for a third straight month in July, offering another sign it has passed the worst
  • Indonesia’s decision to bring in hundreds of Chinese workers for multi-billion dollar nickel and stainless steel projects amid the coronavirus pandemic has drawn the ire of local workers
  • Surrounded by what Fed Governor Lael Brainard recently called “a thick fog of uncertainty,” the bank will likely abstain from new policy action at the July FOMC meeting, says Yelena Shulyatyeva
  • Inflation-adjusted gold is still 30% below 1980 peak, this chart shows
  • Job seekers in Singapore are seeing signed employment contracts rescinded as businesses cut back on hiring during the pandemic-triggered recession, recruiters say
  • Chancellor of the Exchequer Rishi Sunak’s “premature” withdrawal of government support means U.K. unemployment will rise above 3 million before the end of 2020
  • Meanwhile, the U.K. is considering ways to loosen its coronavirus quarantine rules after restrictions on trips to Spain provoked a backlash from tourists, airlines and the government in Madrid

©2020 Bloomberg L.P.

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