No Renewed Lockdown, Recovery Reprise, Negative on BOJ: Eco Day

(Bloomberg) -- Happy Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help get you through to the weekend:

• Treasury Secretary Steven Mnuchin said the U.S. shouldn’t shut down the economy again even if there is another surge in coronavirus cases. At the same time, Houston-area officials are “getting close” to reimposing stay-at-home orders as virus cases expand
• Australia’s resource industry is set to aid the economic recovery once again as higher prices and expansion plans assist the nation emerging from its coronavirus lockdown
• Trillions of yen of financial support hasn’t been enough to win over Japan’s commercial banks, with the majority of lenders still vehemently opposed to the BOJ’s negative interest rate policy
• In 2015, Prime Minister David Cameron took China’s Xi Jinping for a beer in his local pub to mark a new “Golden Era” in the relationship between their two countries. It hasn’t quite worked out that way
• The Bank of Korea should be prepared to gradually “normalize” the unprecedented steps it took since the coronavirus outbreak
• President Donald Trump says the economy will be back and better than ever next year. Fed chief Jerome Powell begs to differ
• On the same theme, Björn van Roye warns a painful post-pandemic restructuring could mean a protracted period of high unemployment across major advanced economies
• Black joblessness underscores the need for the Fed to look at inequality. Stephanie Flanders and Lucy Meakin explore the issue in the latest Stephanomics Podcast. Meantime, 77% of HR executives expect more remote work to continue, Bloomberg radio reports
• Applications for U.S. unemployment benefits extended their slow decline despite a stream of business reopenings
• Emerging-market economies are grappling with a new dilemma as they begin the slow journey to recovery: how to rescue state-owned businesses without also triggering a debt crisis
• Since India announced that it would temporarily suspend its insolvency law, credit investors are concerned that weaker borrowers may use this as an excuse to delay or avoid payments
• China is increasing troop numbers along its border with India amid a month-long stand off between the nuclear armed neighbors in the Himalayas, Asian News International reported

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