Virus Spreads, Davos in Agreement, RBA and Price Spikes: Eco Day

(Bloomberg) -- Welcome to Friday, Asia. Here’s the latest news and analysis from Bloomberg Economics to help get you through to the weekend:

• The outbreak of a SARS-like virus that’s killed at least 17 people appeared in the Asian financial hub of Singapore, as Chinese health officials scrambled to halt its spread. Bloomberg’s Chang Shu is tracking the economic impact
• The quarreling elites gathered at Davos agreed on at least one thing about the world’s central bankers: they’re going to have a hard time getting out of the cul-de-sac of their own making. Meanwhile, the idea of a waste-free global economy is catching on
• Philip Lowe is on track to reach a milestone that has eluded him since taking the helm of Australia’s central bank: his inflation target. But given the circumstances, he’d doubtless prefer not to be
• The U.S. could still consider imposing tariffs on auto imports from Europe and elsewhere if countries continue to undertake protectionist measures, Commerce Secretary Wilbur Ross said
• The U.S. and Europe are making progress toward a global pact on the taxation of digital services, with France’s finance minister saying American officials agreed on a blueprint for negotiations
• Pessimism about the economy among U.S. consumers fell in January to an almost 18-year low as record stock prices and a strong job market buoy current sentiment
• The flash PMI reading Friday will go a long way toward determining whether the Bank of England cuts interest rates at the end of the month, writes Bloomberg’s Dan Hanson
• Christine Lagarde’s inaugural move as ECB president could presage the institution’s first hiatus in policy activism for years
• Argentina’s central bank has slashed interest rates in recent weeks, reviving concerns about an oft-repeated monetary policy misstep that triggers faster inflation in the country
• The Swiss National Bank left the door open to a further easing of policy to rein in the “highly valued” franc, though a new currency cap isn’t in the cards for now
• Angela Merkel is running out of time to reset the German economy before her era as chancellor draws to a close

To contact the reporter on this story: Alexandra Veroude in Sydney at averoude4@bloomberg.net

To contact the editors responsible for this story: Paul Jackson at pjackson53@bloomberg.net, Michael Heath

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