U.S. Trillion, EU Stimulus Deal, India Investment Drops: Eco Day

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

  • Economists say $1 trillion or more needed to avert U.S. disaster
  • EU leaders agreed on an unprecedented stimulus package worth 750 billion euros ($860 billion) to pull their economies out of the worst recession in memory and tighten financial bonds
  • Indian companies are pushing back big-ticket investment plans in another sharp blow to an economy that is hurtling toward its first contraction in more than four decades
  • U.S. Secretary of State Michael Pompeo praised Britain’s tougher stance on China as the transatlantic allies signaled they are planning more coordinated action against Beijing
  • South Korea slipped into a recession in the second quarter, official data are expected to show Thursday, after its no-lockdown strategy and stimulus failed to offset a slump in exports
  • When China’s President Xi Jinping announced its ambitious Belt and Road Initiative in 2013, Pakistan was one of the first to welcome it with open arms. The two have gotten together again to revive the project from hibernation
  • Judy Shelton, President Donald Trump’s pick for the Federal Reserve’s Board of Governors, cleared a key hurdle by winning the approval of the Senate Banking Committee. Bloomberg Economics’ view is that the immediate impact on Fed policy will be minimal
  • Indonesia’s central bank Governor Perry Warjiyo said last week’s interest rate cut didn’t signal a change to its policy strategy and the currency is set to rebound after weakening beyond fundamentals
  • Japan’s push to help revive its virus-ravaged economy with a “Go To” travel campaign has dealt a double blow to Tokyo, whose residents were cut off from promised travel subsidies and businesses are set to miss out on tourists

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