Suga Doubles Down, Iron-Ore Irony, India’s Deficit Calm: Eco Day

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

  • Japanese Prime Minister Yoshihide Suga doubled down on his bet that promoting domestic travel will ensure the economy stays on a recovery path and that his tenure as premier will continue
  • As China-Australia relations descend into a morass of sanctions and recriminations, Beijing is delivering a huge cash windfall to Canberra through its insatiable demand for iron ore
  • India’s Finance Minister Nirmala Sitharaman said she will not let worries about a widening budget deficit stop her from spending more to support an economy that’s entered an unprecedented recession
  • Hong Kong Chief Executive Carrie Lam said Beijing’s sweeping crackdown in the city she oversees has strengthened law and order and improved its business environment
  • Prime Minister Scott Morrison has new powers to veto or scrap agreements that state governments reach with foreign powers under laws that could stymie China’s Belt and Road Initiative in Australia and further inflame tensions between the trading partners
  • The Bank of Canada is expected to keep extremely accommodative policy intact on Wednesday, with an outside chance it will do even more to support the recovery
  • U.S. small-business optimism dropped by more than forecast in November as a resurgence in the coronavirus and the election outcome more than offset favorable news about a vaccine
  • Boris Johnson travels to Brussels for dinner with Ursula von der Leyen as both sides seek to save Brexit trade negotiations
  • In the slow march toward equality over who wields global economic power, 2020 has seen more progress for women storming bastions of hitherto male-only dominance

©2020 Bloomberg L.P.

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