PBOC Buying Debt? Jokowi Dilemma, Fed Highlights Virus: Eco Day

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

• The People’s Bank of China may have bought government bonds from domestic banks in July, a rare move that has analysts puzzling over the monetary authority’s policy intentions amid a record amount of government debt issuance
• Indonesian President Joko Widodo is trying to tackle a surge in virus cases and the worst economic crisis in more than two decades with dwindling fiscal resources
• Two senior Fed officials lamented the U.S. failure to control the coronavirus, which stood in poor comparison with efforts in other advanced countries and was undermining the nation’s recovery
• U.S. and Chinese negotiators plan to discuss progress of their trade deal in the coming days, with Beijing pushing to widen the agenda to include Washington’s recent crackdown on businesses including TikTok and WeChat.
• The U.S. stepped up pressure on Germany and France with an extension of tariffs on some of their goods, a move designed to squeeze the EU into settling a long-running dispute over illegal subsides to Airbus SE
• The U.K. economy suffered more than any major European nation during the coronavirus lockdowns, piling pressure on the government to ensure the withdrawal of its support programs doesn’t derail the nascent recovery
• Capacity constraints have driven up rates for international shipments this year whether by sea, air or land, further complicating matters for supply-chain managers
• U.S. consumer prices rose in July by more than expected on a jump in auto and apparel costs, though inflation remained broadly muted as the pandemic suppressed demand
• Chinese households are putting their wealth into stocks to cash in on a rallying market
• Statements issued by China and Hong Kong after the arrest of media tycoon Jimmy Lai underlined how a national security law passed in June is undermining the city’s independent judicial system

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