Powell’s Warning, China Rate Cut, Australia’s Addiction: Eco Day

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

• The U.S. economy faces unprecedented risks if policy makers don’t rise to the challenge, Fed Chair Jerome Powell said while pushing back against the notion of negative interest rates
• China will likely cut the cost of medium-term loans to banks for the third time this year on Thursday, as it aims to ensure sufficient liquidity in the financial system. Millions of Chinese people are being thrown out of work by the collapse in global demand and a slow restart of the domestic economy
• Australia is the most China-reliant economy in the developed world, leaving it vulnerable to blowback from the Prime Minister’s calls for an independent probe into the origins of the coronavirus
• Get ready for the New Normal 2.0 -- more appropriately, 2-point awful
• Italy is trying to prop up its economy with a second stimulus package worth 55 billion euros ($60 billion). It may not be enough
• The euro zone has hit the low point of its economic slump though the path of recovery remains highly uncertain, ECB officials signaled
• Bank of England Governor Andrew Bailey offered another hint that more bond purchases are on the way after figures showed a deep contraction at the end of first quarter
• Malaysia’s economy eked out its slowest growth in a decade to start the year. The largest set of stimulus measures in Southeast Asia will be put to the test to keep the economy afloat
• Goldman now sees the U.S. jobless rate peaking at 25%, instead of the previous 15%
• Kung Fu master Lam Shu-shing teaches the Wing Chun technique to students, something he’s been doing since 1978. A banner on the wall nods to a legacy that traces back to his teacher’s master, who also trained Bruce Lee

©2020 Bloomberg L.P.