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Fed Corporate QE, Outlook Less Bleak, EU Counters China: Eco Day

Fed Corporate QE, Outlook Less Bleak, EU Counters China: Eco Day

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

  • The Fed will begin buying individual corporate bonds under its Secondary Market Corporate Credit Facility, an emergency lending program that to date has purchased only exchange-traded funds
  • Tom Orlik sees a less bleak global picture, as indicators for a number of major economies come off the floor. In China and Germany, some gauges show activity back to pre-virus levels
  • The EU fired a warning shot at China over its trade ambitions with an unprecedented tariff decision to counter Chinese exporter subsidies
  • North Korean state media said Kim Jong Un’s regime is reviewing a plan to send its army into the demilitarized zone. Meantime, Kim’s younger sister issued a statement saying that it was “high time” to break ties with South Korea
  • The great decoupling? Brendan Murray looks at what’s next for the U.S.-China rift
  • India’s trade fared slightly better in May than a month ago as restrictions were eased and parts of the global economy reopened
  • Germany’s aid to Europe begins as its people set out in search of sun
  • The coronavirus halted economic activity in the U.S. with alarming speed, but reopening the economy is already proving to be a much slower and more difficult process
  • Atlanta Fed President Raphael Bostic said he expects U.S. unemployment will be around 10% in the fourth quarter, with an uneven recovery from the Covid-19-induced recession
  • Peru’s economy contracted 40.5% in April, setting it up for one of the world’s biggest crashes this year and increasing the pressure on President Martin Vizcarra to end the country’s three-month lockdown
  • Taiwan, one of the few places that’s effectively contained a coronavirus, is already stockpiling supplies for the next pandemic
  • Donald Trump has argued that China is rooting for Joe Biden come November’s U.S. presidential election. In Beijing, however, officials have come around to support four more years of Trump

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