Kaplan on Quarters Ahead, Singles Day Boom, RBNZ Delay: Eco Day

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

• The U.S. economy is likely to have a strong recovery in the second half of the 2021 though the resurgence of Covid-19 jeopardizes the next two quarters, Dallas Fed President Robert Kaplan said. Philadelphia Fed chief Patrick Harker says American workers will need to upgrade their skills if the economy is to continue growing
• Alibaba Group Holding Ltd. kicked off the world’s biggest shopping binge that will serve as the best barometer of China’s recovery
• New Zealand’s central bank further delayed the start of increases in bank capital buffers to support the recovery from Covid-19
• Secretary of State Michael Pompeo said the U.S. is “not finished yet” when it comes to getting tough on China
• The Bank of Japan is stepping up its efforts to reduce systemic financial risks posed by regional banks, writes Yuki Masujima
• Former Treasury Secretary Larry Summers has advice for whoever has his old job next year: Don’t mess with the dollar
• The results of the presidential election showed a widening partisan and economic divide between urban and rural America
• The ECB should target higher average inflation -- unless house prices are soaring -- and governments must spend their way out of recession. Governing Council member Klaas Knot said the bank will need to make a call on what economy emerges from the pandemic
• Italy may need to spend as much as 10 billion euros ($11.8 billion) a month to aid businesses and workers hit by restrictions
• President Recep Tayyip Erdogan’s pledge to stay committed to free markets after replacing his top economic officials signals a major policy shift after two years of currency turmoil
• In his first year in office President-elect Joe Biden has an opportunity to remake the Fed leadership: the terms of Jerome Powell and his two vice chairs expire by 2022. But what central banks need most post-Covid is a fresh understanding of what they were put on this Earth to do, writes Stephanie Flanders
• President-elect Joe Biden said Donald Trump’s refusal to accept the election result was an “embarrassment” that will stain his legacy

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