Surprise Strength, Climate’s Costs, Impossible Trinity: Eco Day

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

  • The U.S. economic recovery’s strength has consistently surprised over recent months, thanks in part to steadfast consumer finances
  • The cost of no serious action on climate change will result in chronic damage that’s likely to strip almost 10% off global production by 2100, Bloomberg Economics estimates
  • One of the toughest challenges central bankers face is how to navigate the “Impossible Trinity” -- maintaining monetary policy independence while allowing a steady flow of foreign capital and keeping a stable currency
  • The State Department signaled its approval for a potential $2.4 billion sale of land-based anti-ship missiles to Taiwan, a move certain to anger Beijing and raise tensions further with the U.S.
  • Singapore’s factory activity is surging on a boom in pharmaceuticals
  • House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed again to close major differences on a fresh U.S. stimulus
  • The Trump administration appealed a WTO dispute ruling that American tariffs on more than $234 billion of Chinese exports violated international rules
  • Meantime, the EU endorsed Nigeria’s Ngozi Okonjo-Iweala to lead the WTO, bolstering her bid as the U.S. backs the only other contender
  • Canada’s central bank is increasingly buying newly-issued government bonds that pay for pandemic spending, potentially stoking controversy over the extent of its budget deficit financing
  • German companies are turning pessimistic on the recovery, potentially marking the beginning of a major economic setback
  • The Asia Pacific Aircraft Storage facility (APAS) makes a strange and eerie sight, with the flat landscape punctuated by familiar tall tail fins against a brooding desert sky in central Australia

©2020 Bloomberg L.P.

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