Taper Pushback, EU Double-Dip, Dodging Jobless Recovery: Eco Day

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

• Don’t discuss reducing the amount of monetary-policy support for the U.S. while the pandemic is still raging, said two Fed officials after some of their colleagues mooted a debate later this year
• The euro-area is poised to shrink again at the start of this year as the resurgent pandemic plunges it into a double-dip recession
• It’s a bold forecast that some say borders on fantasy: Wall Street banks and Fed officials see powerful employment gains over the next three years that evade the curse of past recessions
• Donald Trump’s tumultuous relationship with the financial industry is once again under pressure after his top creditor, his hometown bank and even his mortgage lender spurned him in the wake of the riots
• China’s credit growth moderated in December, suggesting that the massive increase in credit since last year may have peaked
• The impact of surging Covid-19 cases in Japan and efforts to fight the pandemic left a deeper mark on activity, particularly by households, writes Yuki Masujima
• India’s inflation cooled to a 15-month low in December, boosting the case for the central bank to resume interest rate cuts
• Thailand unveiled stimulus programs including cash handouts worth 210 billion baht ($7 billion) to support millions of people and firms
• The past week has seen a surge in option bets which pay off as more Fed hikes are priced in, though all of them are targeted at rates two or three years from now
• Four years ago, the EU was jarred by two big political earthquakes: A British populace that had voted to break away from the bloc and American voters who had installed a celebrity businessman pledging to rewrite the rules of international commerce
• Brazil’s central bank said inflation pressures could persist in the beginning of the year, eventually leading to an interest rate hike
• Prime Minister Boris Johnson is planning to host a virtual meeting of G-7 leaders next month as Britain starts its presidency
• Janet Yellen’s confirmation hearing as Treasury secretary is planned for Jan. 19 in front of the Senate Finance Committee
• Here’s how the pandemic is keeping Malaysia’s politics messy

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