World Factory Power, Yellen Wealth Call, OECD Downgrade: Eco Day

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

• The world’s factories are powering along, providing vital support for economies as renewed virus restrictions take a toll on growth
• Janet Yellen called for closing the U.S. wealth gap and restoring America’s standing as she was introduced as next treasury secretary, with President-elect Joe Biden pledging “help is on the way”
• The resurgence of the coronavirus pandemic has dramatically weakened the global recovery and it could get a lot worse if governments withdraw support too soon, the OECD warned
• Demand for Chinese debt is falling amid investor concern over a string of defaults by state firms and the pressure of U.S. sanctions
• Efforts to pass more coronavirus relief gained a small measure of hope as House Speaker Nancy Pelosi offered a fresh proposal
• A trifecta of regional economic numbers helps explain the upbeat mood in global financial markets even as the pandemic worsens
• Macau saw revenue plummet by $27 billion as pandemic travel curbs kept lucrative Chinese gamblers away. A potentially bigger threat is the prospect of China’s central bank-backed cryptocurrency
• The ECB should focus on keeping financial conditions at current levels through the crisis rather than announcing a blockbuster stimulus package, Executive Board member Isabel Schnabel said, as news chief economist Philip Lane has been speaking to banks and investors immediately after policy decisions risks renewing unease
• The Swiss economy grew the most since at least 1980 as business activity recovered from shutdowns to stem the coronavirus crisis
• Prime Minister Scott Morrison demanded Beijing apologize for a provocative tweet depicting an Australian solider holding a bloody knife to an Afghan child’s throat. Instead, the Chinese Foreign Ministry asked whether Morrison lacks “a sense of right and wrong”

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