Global Green Shoots, Hong Kong Capital Fears, Deflation: Eco Day

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

• Slowly but not surely, the world economy is emerging from its coronavirus-enforced hibernation
• The fresh political turmoil engulfing Hong Kong in recent days is reviving worries over capital outflows from one of the world’s biggest financial hubs
• The Covid-19 shock could spur an acceleration in global inflation driven by the stimulus or a spell of deflation as demand craters. Japan’s experience suggests the latter is the bigger risk
• President Donald Trump said he’ll announce new U.S. policies on China on Friday. His top economic adviser said Beijing would be held accountable. Meantime, with Trump and Xi Jinping both focused domestic support, the bottom is falling out of U.S.-China relations
• From call centers to hotels to airlines, India’s key services industries have come to a standstill during the coronavirus outbreak, dragging the economy into possibly its worst recession on record
• China’s economy can grow this year if the key tasks set out by the government, including ensuring employment and people’s livelihoods are achieved, according to Premier Li Keqiang
• The coronavirus pandemic is worsening U.S. inequality along income and racial lines, Philadelphia Fed chief Patrick Harker said
• The White House won’t issue a formal economic forecast showing the extent of the U.S. downturn precipitated by the coronavirus pandemic
• German Chancellor Angela Merkel is preparing a second phase of stimulus of between 50 billion euros ($55 billion) and 100 billion euros to turbo-charge the economy’s recovery from the virus crisis
• It’s safer for the BOE to ease too much rather than too little as it responds to the pandemic, policy maker Michael Saunders says
• Canada’s status as one of the fastest growing Group-of-Seven economies is coming to an end
• A 70,000 year view on the coronavirus crisis (Podcast)
• The U.S. trade war with China cut $1.7 trillion from the market value of listed American firms and will reduce their investment growth rate by almost 2 percentage points by year end

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