U.S.-China Feud, Fed Cold on Jobs, Emerging Disconnect: Eco Day

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

• The U.S. and China are moving beyond bellicose trade threats to exchanging regulatory punches that threaten a wide range of industries including technology, energy and air travel
• Jerome Powell likes to point out how the Fed’s run-it-hot policy to prolong growth helped low-income Americans get jobs and pay raises. But it’s reversing now
• A disconnect is growing in emerging markets, which have rarely faced such dire economic conditions and yet whose assets are about to round out their best quarter in a decade
• From March through May, around 10 million migrant workers fled India’s megacities, afraid to be unemployed, hungry and far from family during the world’s biggest anti-Covid lockdown
• The Bank of Korea said unemployment and other fallout from the pandemic will accelerate already existing declines in the potential growth rate. Meantime, Finance Minister Hong Nam-ki ruled out a fourth extra budget and said the economic shock may have bottomed
• Japan’s retail sales edged up in May, gaining from the prior month for the first time since February and adding to signs the worst of the pandemic’s economic impact may have passed
• Bloomberg Economics parses high frequency data for a read on economies around the world
• French central bank head Francois Villeroy de Galhau played down the prospect that the ECB would buy junk bonds as part of its pandemic emergency program
• Deaths from the coronavirus worldwide topped 500,000 and infections surged past 10 million, two chilling reminders that the deadliest pandemic of the modern era is stronger than ever

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