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Economy Spiraling, Vexed Central Banks, Rich Get Richer: Eco Day

Economy Spiraling, Vexed Central Banks, Rich Get Richer: Eco Day

Welcome to Monday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help you start the week.

  • A top economic adviser to President-elect Joe Biden warned the U.S. economy is “spiraling downward” and called for a swift response
  • Resurgent coronavirus outbreaks will vex central bankers on five continents this week as they weigh the threat of more damage to growth against a hope that mass vaccinations will reopen economies
  • Some Americans have become, by some measures, richer during the pandemic than ever before
  • Joe Biden ascends to the presidency on Wednesday with an inaugural speech outlining how he’ll tackle the health and economic crises he inherits while attempting to knit the country back together after riots. Here’s why Biden’s stimulus hopes might actually depend on ‘reconciliation.’ Meantime, U.S economist Nouriel Roubini fears Biden’s presidency will be marked by unrest and cyber attacks
  • Goldman Sachs economists raised their growth forecasts for the U.S. this year and beyond after Biden unveiled a sweeping revival plan
  • Hong Kong’s unemployment rate for the three months through December is likely to exceed the highest level in 16 years
  • Robert Hormats, ex-vice chairman of Goldman Sachs International and adviser to five U.S. administrations, predicted tariffs on China will remain under Biden during the “What Goes Up” podcast
  • A surge in coronavirus cases in Japan has dealt a blow to Prime Minister Yoshihide Suga’s once strong public support, raising the risk he gets replaced ahead of an election due by October
  • Germany’s dominant party voted for continuity by electing Armin Laschet as leader, opting for the candidate who most resembles outgoing chancellor Angela Merkel in policy and style
  • The EU has set out plans to strengthen the international role of the euro, as its seeks to erode the dominance on the dollar and lessen risks like U.S. sanctions. French Foreign Minister Jean-Yves Le Drian is calling for a moratorium on tariffs between the EU and the U.S. to allow time for the “poisonous” issue to be resolved
  • Italy expects debt to rise more than expected this year, as it gets ready to boost fiscal stimulus to support a battered economy
  • The Dawei Special Economic Zone, Myanmar’s largest industrial project backed by Thailand, is headed for further delay and possible litigation following sudden termination of development contracts
  • The world’s biggest shipping company demanded a more effective military response to surging pirate attacks off West Africa’s coast
  • More than three months a hundred Thai resorts reopened to extended-stay travelers in an attempt to revive a battered economy, foreign arrivals have failed to meet even rock-bottom expectations

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