Oil Crash Disinflation, Grim Economics, Firehose Unwind: Eco Day

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

  • The historic collapse in oil is inflicting another shock on a weakened world economy, creating a disinflationary risk for some and severely denting budgets in producers
  • These are the grim economics of the pandemic: Younger workers get paid again if everyone goes back to work, but older Americans are more likely to die from spreading infection, according to researchers at the Federal Reserve Banks of Kansas City and Minneapolis
  • Australia’s central bank is scaling back its policy firehosing of money markets as dislocations from coronavirus ease and the bank’s bond-buying program has lowered interest rates across the economy
  • The U.S. budget deficit may quadruple this year to almost $4 trillion and by 2023, U.S. debt held by the public is set to surpass records set in the post-World War II years
  • For India’s financial sector, the coronavirus is the latest headwind in a multi-year storm that’s dragged down consumption and see the nation no longer be the world’s fastest-growing major economy
  • The Bank of Japan has long tried and failed to hit its target of 2% annual inflation, but the coronavirus means the topic has faded from conversation in a sign a permanent shift in priorities
  • Indonesia is running out of time to contain the pandemic and the government should immediately ramp up stimulus to lessen the economic shock, according to the nation’s top business lobby group
  • Reserve Bank of New Zealand Governor Adrian Orr said he remains “open minded” about the direct monetization of government debt
  • ECB policy makers will hold a call where they may discuss whether to accept junk-rated debt as collateral from lenders, according to officials familiar with the matter
  • A global environment turning less conducive to trade and technology flows means China’s road to higher productivity will get bumpier, writes Qian Wan
  • America needs real-time economic data to get through this crisis. The country has put its faith in statistics. But the numbers are failing it this time, writes Shawn Donnan
  • Reports of a health scare for Kim Jong Un are prompting North Korea watchers to envision the country without him: And the general consensus is that not much may change
  • The meltdown in oil markets is turning back the economic clock for Saudi Arabia, putting it on track for a deep contraction

©2020 Bloomberg L.P.

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