Early Fed Cut, BOK Under Pressure, China Deposit Rate: Eco Day

(Bloomberg) --

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

• Market pricing suggests that a Fed interest-rate cut could be in the cards as soon as March or April, even though the first quarter-point reduction isn’t fully priced in until around June
• The Bank of Korea is facing mounting pressure to cut rates to a fresh record low as the coronavirus slams the brakes on early signs of a recovery in domestic demand and trade
• Liu Guoqiang, a deputy governor of the PBOC, said policy makers are considering lowering the benchmark deposit rate over this weekend for the first time in five years
• The coronavirus hit has exposed the extraordinary depth of Australia’s economic dependence on China and fueled questions over whether the nation is too reliant on the Asian behemoth
• In the weeks ahead data releases across China, Asia, Europe and America will provide a meaningful look at the economic impact of the coronavirus, writes Tom Orlik
• Hong Kong’s government unveiled a budget packed with giveaways including a one-time cash handout as the city struggles to stabilize its battered economy. Qian Wan says while the stimulus worth 4.2% of GDP will help, it won’t prevent the economy from contracting
• South Korea looks like the next big economy to wobble under coronavirus and there’s a hidden risk amid the human and economic toll: tension with the Trump administration, writes Chris Anstey in Terms of Trade
• German Finance Minister Olaf Scholz is considering a move that could open an avenue for limited fiscal stimulus in the economy
• The ECB’s strategic review has already featured an intense debate about potential changes to the inflation goal, with views aired publicly highlighting key areas of disagreement
• The energy transition, climate change and social demographic trends are set to create an economic world where everything is more decentralized
• In Malaysian politics, two figures play a crucial role: Mahathir Mohamad, who has ruled for almost a quarter century, and Anwar Ibrahim, who has waited to succeed him. Now they are facing off
• The Tokyo 2020 Olympics are less than five months away -- or, in coronavirus time, somewhere between six and 10 incubation periods. Even as organizers at every level insist the games aren’t at risk, the virus is already casting a chill over the event

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

To contact the editors responsible for this story: Paul Jackson at pjackson53@bloomberg.net, Alexandra Veroude

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