Fed Behind the Curve, India Taper Warning, Lonely ECB: Eco Day

(Bloomberg) -- Happy Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to take you through to the weekend:

• The Fed will be behind the curve in containing inflation coming out of the pandemic, two former monetary policy makers said
  • Yields on long-term Treasuries surged as traders brought forward their expectations for the first hike
• Traders are seeing hints that India’s central bank is seeking to drain record liquidity from the banking system, another sign that the global flood of pandemic-era easy money may begin to ease
• With central banks from Washington to London this week signaling more alarm over faster inflation, the ultra-stimulative path of the euro zone and some of its neighbors appears lonelier than ever
• India’s long-delayed plans to overhaul its military are getting a new life as the government moves closer to the U.S. and its allies, which are strengthening defense cooperation against China
• Norway delivered the first post-crisis interest-rate increase among economies with the world’s 10 most-traded currencies
• Taiwan’s central bank further tightened lending rules to rein in property prices even as it kept its key rate at a record low.
• The Bank of England raised the prospect of hiking interest rates as soon as November to contain a surge in inflation
• There are investment opportunities of up to $2.5 trillion a year -- the equivalent to 2 percentage points of global GDP -- in energy infrastructure, according to ex-BOE chief Mark Carney
• Turkey’s lira fell to a record low after the central bank cut its benchmark interest rate, unleashing a new bout of market turbulence
• BOE hawks, Brazil hikes, Turkey cuts and the Philippines on hold are included in Bloomberg Economics’ research wrap
• To understand why more than 100 container ships are waiting to enter U.S. ports from Southern California to Savannah, Georgia, it helps to keep tabs on the congestion that’s building at another key junction of freight transportation: rail yards
• Australian economist Steve Keen plans to run for parliament in next year’s election, campaigning for a radical reshaping of the nation’s economy that would be financed via Modern Monetary Theory
• Japan’s ruling party is set to choose the country’s next prime minister on Sept. 29. Although the leading candidate is a man, in a historic twist of events two of the four contenders are women

©2021 Bloomberg L.P.