Pompeo Pressure, China’s Golden Tourism, Deficit Day: Eco Day

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

• U.S. Secretary of State Michael Pompeo will meet with his counterparts from three other democratic countries in Tokyo, in a bid to keep up the pressure on China
• With the Covid-19 pandemic largely under control in China, the Golden Week holiday is showing the country’s confidence in its rebound, as nearly half a billion people traveled domestically
• Australia’s government will lay out a spending program to resuscitate the economy and generate jobs for the hundreds of thousands of people left unemployed by the pandemic
• President Donald Trump walked out the front doors of the Walter Reed National Military Medical Center on Monday and boarded the presidential helicopter to return to the White House
• South Korean companies are reluctant to relocate home from China, despite the governments’ best efforts to draw them back amid the pandemic and U.S.-China trade tensions highlighting the risks of over-reliance on China as a manufacturing base
• A stronger-than-expected U.S. rebound in the third quarter still leaves 2020 as the worst full-year contraction in the post-WWII record. The sustainability of the recovery going into 2021 remains an open question as the spike in Covid-19 infections and stimulus gridlock cloud the outlook, write Yelena Shulyatyeva
• Federal Reserve Bank of Cleveland President Loretta Mester favors considering whether to concentrate the central bank’s bond buying more on longer-dated maturities
• Frank Elderson is on course to become the first Dutchman in 17 years to serve on the ECB’s top policy team after he prevailed over his Slovenian rival for the job
• The U.K. labor market is about to go through a shock not seen in a generation. And BOE policy maker Jonathan Haskel said he’s prepared to back more monetary support for the U.K. if necessary, warning that the near-term risks to the economy lie to the downside
• The IMF said the Brazilian economy faces “exceptionally high and multifaceted” risks as it continues to grapple with the coronavirus pandemic and its impact on the country’s debt dynamics
• Even though 2020 saw global business activity sacrificed to contain the spread of the virus, economists say that policymakers are likely to remain focused on growth metrics

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