Goodbye ‘V,’ Hello ‘W,’ Fed Warning, Labor Destruction: Eco Day

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

• Three months ago, there was hope Covid-19 could be contained. Now, the pandemic appears all-consuming, writes Tom Orlik
• Fed Chair Jerome Powell stressed to Congress that getting the coronavirus under control was vital as the U.S. economy rebounds from the sharpest contraction on record. Meantime, two presidents said the Fed is committed to fighting racism as an economic issue
• The damage inflicted on the global labor market by the coronavirus is proving worse than initially estimated and will be impossible to repair in the second half of 2020, the ILO says
• The central banks of Australia and New Zealand responded quickly and decisively to the coronavirus pandemic with aggressive bond-buying programs. But there was one key distinction
• Indonesia’s central bank is close to agreeing to fund $40 billion of the government’s pandemic response, the largest debt monetization program among emerging markets. It is also pressing ahead with plans to build a new capital with the aim of reviving the economy
• Tourism holds the key to post-virus growth in New Zealand, writes James McIntyre
• Boris Johnson set out his vision for dragging the British economy out of what may be its deepest recession in 300 years: build, build, build
• The ECB may not need to use the full size of its recently expanded pandemic purchase program, according to Executive Board member Isabel Schnabel
• Canada’s economy is crawling out of its deepest hole since the Great Depression, but the path will be long
• The U.S. Treasury Department paid out more than $100 billion in unemployment benefits in June
• Everybody loves to hate Modern Monetary Theory, writes Peter Coy
• Almost 90% of Americans say they are dissatisfied with the state of the country, and their unhappiness is affecting their political decisions four months before the presidential election

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