Powell Sees Progress, Crypto Can Coexist, U.S. Blowout: Eco Day

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

  • Fed Chair Jerome Powell said that while the economic recovery is “making real progress,” the gains have been uneven. Bloomberg Economics reflects on the importance of jobs in any Fed taper
  • Cryptocurrencies like Bitcoin and Ether will co-exist “for a while” with more-restrictive digital coins such as the one issued by China’s central bank, according to Changpeng Zhao, CEO of Binance
  • The U.S. Treasury more than quadrupled its borrowing estimate for the quarter through June, and expects to need some $1.3 trillion over the second half of the fiscal year to help pay for fresh spending
  • Five years ago, Australia’s defense chief dismissed worries over a Chinese company leasing a port used by U.S. Marines. Now Canberra is weighing whether to force a sale. Europe is similarly moving toward the U.S. stance on Beijing as tensions spill over. In contrast, Philippine President Rodrigo Duterte said China remains a benefactor
  • South Korea’s inflation accelerated in April to the fastest pace since 2017, aided by a favorable base effect amid a broadening recovery
  • A crisis at Chinese asset management firm Huarong has had limited impact on domestic financial markets, Bloomberg Economics says
  • President Joe Biden’s promise to start narrowing income and wealth gaps underpins every part of his economic program, from almost $4 trillion in spending plans to the biggest tax increase in a generation
  • Europe’s economy is finally turning the corner from its worst crisis in the postwar period after a devastating double-dip recession
  • The semiconductor shortage has slashed vehicle production so much that rental-car companies can’t get the new cars they need, so they have resorted to buying used vehicles at auction
  • It’s not just India. Fierce new Covid-19 waves are enveloping other developing countries across the world, placing severe strain on their health-care systems and prompting appeals for help

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