Growth Threat, Vanguard of Tapering, Inflation Specter: Eco Day

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

  • The renewed Covid-19 surge threatens to further divide the world economy between rich and poor, potentially damaging global growth
  • The Bank of Canada took the biggest step yet by a major economy to reduce emergency levels of monetary stimulus
  • As the global economy rebounds and commodity prices hit multi-year highs, emerging-market investors are seeking refuge in the one area that offers protection from inflation concerns
  • China is considering a plan that would see the central bank assume more than $15 billion of assets from China Huarong Asset Management Co. David Qu asks how big is too big to fail
  • Australia has canceled agreements between China’s Belt and Road Initiative and the Victoria state government, in a move that could further worsen ties between the two nations
  • New Zealand will guarantee deposits of up to NZ$100,000 ($72,000) per eligible institution as part of new measures to protect New Zealanders’ interests in the banking and financial system
  • The BOJ has done everything it can to normalize policy under Governor Haruhiko Kuroda’s watch and is now set to ride out the rest of his term without any major changes
  • Mario Draghi’s plan to reengineer Italy’s economy with EU money after the pandemic aims to achieve a maximum impact on growth
  • President Recep Tayyip Erdogan is pressing ahead with his multi-billion-dollar project to build a new strait across Istanbul
  • Congress is moving with urgency on legislation to confront China and bolster competitiveness in technology and critical manufacturing

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