Fed Stays Course, FX Manipulators, China Goes It Alone: Eco Day

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

  • The Fed strengthened its commitment to support the U.S. economy, promising to maintain its massive asset purchase program until it sees “substantial further progress” in employment and inflation
  • The U.S. designated Switzerland and Vietnam as currency manipulators for the first time, while keeping China on a watch list
  • China’s central bank is striking out on its own with signals of tighter monetary policy, widening a divergence with other large economies
  • New Zealand aims to begin vaccinating its entire population against Covid-19 in the second half of next year in its largest-ever immunization program. Indonesia, meantime, has decided to offer free Covid-19 vaccines to people after considering the state budget
  • Thailand and Russia are well placed to be among the emerging-market standouts that could beat expectations next year
  • Taiwan’s central bank is in something of a policy bind due to its currency’s strength, while Indonesia and the Philippines are expected to keep their key interest rates steady on Thursday
  • U.S. retail sales dropped by more than forecast and October’s reading was revised to a fall as the economic rebound hits bumps
  • The ECB’s bigger emergency bond-buying program risks weakening market discipline, Governing Council member Jens Weidmann said
  • New Zealand’s successful containment of the virus and removal of social distancing have delivered a fiscal payoff, says James McIntyre
  • Sweden, which avoided a strict lockdown in its response to the pandemic, said an expected rebound next year will be weaker than initially predicted as Covid-19 deepens its grip
  • Brazil must cut spending and mandatory obligations to avoid a “recession like in the lost decade of the 1980s,” the OECD says
  • Pakistan will start building a 1,100 kilometer pipeline with Russia that will allow it to operate more liquefied natural gas terminals
  • Here’s where a U.S.-China clash may occur in the South China Sea

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