ADVERTISEMENT

Gray China, Inflation Drumbeat, Australia Contraction: Eco Day

Gray China, Inflation Drumbeat, Australia Contraction: Eco Day

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

  • China’s network of gray-market shoppers have been grounded, as travel curbs and a government shift stymied daigou who buy abroad
  • The outsize gains in U.S. inflation measures that exceeded forecasts over the last four months have been borne out in recent earnings calls, with many executives highlighting greater pricing power
  • With Sydney in lockdown and half Australia’s population under stay-at-home orders, the economy looks set to contract in the third quarter, after a modest expansion in 2Q, writes Bloomberg Economics’ James McIntyre
  • Fed Chair Jerome Powell enjoys broad support for his renomination
  • U.S. lawmakers likely have until October or November to raise or suspend the debt limit, the Congressional Budget Office indicated
  • Treasury Secretary Janet Yellen will have to manage two separate sets of delicate negotiations this fall around a global corporate-tax accord, each with clashing deadlines that could threaten success
  • Bank Indonesia will likely keep the policy rate at a record low for a fifth straight meeting. The Southeast Asian nation is struggling with one of the world’s worst outbreaks after the president resisted stricter containment measures in favor of a business-friendly approach
  • The ECB starts a potentially heated meeting, with officials needing to decide how their new monetary strategy affects near-term policy
  • Spain is set to be one of the fastest-growing developed economies
  • Japan and South Korea posted solid export gains again, adding to global trade momentum just as virus variants cloud the outlook
  • India’s actual death toll from Covid-19 could range between 1.3 million to a staggering 5 million, with even the most conservative estimate putting its tally at more than double the U.S. level

©2021 Bloomberg L.P.