Jackson Hole Clarity, New China Guide, BOK in Hot Seat: Eco Day

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

• The road to more normal monetary policy runs through Jackson Hole. Topping Fed Chair Jerome Powell’s to-do list will be clarifying when and how to phase down the asset purchase program, Bloomberg Economics says. Powell’s chances for a second term also gained momentum with Treasury Secretary Janet Yellen’s endorsement
• The Chinese Communist Party has a new catchphrase to guide its economic policy, a “cross-cyclical” approach that means taking action sooner, in smaller steps and with a longer time frame in mind
• All eyes are on the Bank of Korea, viewed as most likely to lead policy tightening in Asia, Bloomberg Economics says. Meantime, South Korean bond investors appear to be betting against the central bank
• President Xi Jinping’s rhetoric about “common prosperity” surged this year, evidence of the Communist Party’s commitment to closing the country’s yawning wealth gap
• Former U.S. Treasury Secretary Lawrence Summers said China’s markets are now a “riskier environment” for investors
• Thailand approved a budget that seeks to ramp up spending on tackling Covid-19 while slashing outlays for defense and education
• German exporters are facing increasing pressure in their home market from Chinese exports to the European Union
• Afghanistan’s new Taliban-led government faces a series of shocks, the nation’s exiled central bank chief says. His Libyan counterpart reckons the Opec nation needs to boost oil output by almost 40%
• Singapore is seeking to add more countries to its vaccinated travel lane program in a signal to the world it’s committed to reopening

©2021 Bloomberg L.P.