Fed Taper Talk, Taiwan Reeling, 1960s Inflation Specter: Eco Day

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

  • Some Fed officials were open to a debate at “upcoming meetings” on scaling back their massive bond purchases
  • Taiwan is battling a surge in Covid cases and drought-triggered power outages, potentially derailing one of Asia’s economic success stories. In the Philippines, snaking queues at Manila food banks have become a common sight as the economy continues to struggle
  • A newly-elected president promising to tackle racial injustice and build a better and fairer economy. A sharply accelerating economy with an inflation rate that’s been below 2% for years. 2021? No, 1965
  • Energy and commodities futures swooned under the weight of inflation fears and concerns about the resilience of Chinese demand
  • China has to give up its control over the currency’s exchange rate eventually if it wants to achieve greater global use of the yuan
  • Japan’s target of balancing its budget by fiscal 2025 is essentially out of reach and pushing for it too hard would derail the economy
  • The ECB is relatively upbeat on the economic outlook while Iceland became the first Western European central bank to tighten monetary policy as it tries to head off inflation
  • Bloomberg Economics’s U.S. wage inflation dashboard shows pockets of pressure, but only tepid gains for most workers. Meantime, the Citi U.S. economic surprise index is close to going negative
  • The U.K. is pushing the G-7 to impose mandatory reporting of environmental risks as U.K. industry faces even higher carbon costs after the nation debuted its post-Brexit emissions trading system
  • The U.S. blocked a shipment of Uniqlo shirts for violating an import prohibition on items suspected to be produced by forced labor from China’s state-owned Xinjiang Production and Construction Corps
  • With hundreds of millions of people now vaccinated against Covid-19, the outbreak should begin to die down in places where many people have been inoculated. But that isn’t happening everywhere

©2021 Bloomberg L.P.

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