Donald Downplay, Brexit Breach, Alternative Indicators: Eco Day

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

• President Donald Trump defended telling a journalist that he intentionally downplayed the severity of the coronavirus in public, saying he didn’t want to cause panic or price spikes
• The European Union is studying the possibility of legal action against the U.K. over Prime Minister Boris Johnson’s plans to breach the Brexit agreement
• Alternative data show Norway, Germany and Japan remaining at the forefront of the recovery, while the U.S., U.K., and Canada persistently remain laggards. Here’s how other places are faring, according to Björn van Roye and Tom Orlik
• Rising inflation in the U.S. could reach as high as 10% in the next four to five years, investor Stan Druckenmiller said, noting the markets are in a “raging mania”
• Nervousness about jobs and the economy has Australian households sitting on their cash -- that’s impeding an economic recovery
• Some ECB policy makers have become more confident in forecasting the region’s economic recovery, potentially reducing the need for more monetary stimulus this year
• Trump aides suppressed evidence of Russian election interference, as well as the threat from white supremacists, according to a whistle-blower complaint
• China’s August activity data are likely to show demand kicking back into action to sustain the economic rebound, though likely to still significantly lag production, writes Chang Shu
• The Bank of Japan will opt to keep policy unchanged next week, with Yoshihide Suga likely to take over from prime minister Shinzo Abe -- and the job of digging the economy out of its worst slump in decades
• Malaysia is narrowly expected to keep its benchmark interest rate unchanged for the first time this year, as the reopened economy shows signs of recovery
• The Bank of Canada reiterated its pledge to keep interest rates at historic lows for years to come, but dialed back willingness to take more aggressive action and said it could adjust bond purchases
• China’s threat to bar companies with ties to U.S. officials who visit Taiwan, suggests a weakness in this sanctions battle: It can control its own borders, but the greenback rules the world

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