Covid Changes Economics, Asia Manufacturing, China Kids: Eco Day

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

  • Once ideas about how to manage the economy become entrenched, it can take generations to dislodge them. Something big usually has to happen to jolt policy onto a different track -- something like Covid-19
  • Asia’s manufacturing activity continued to advance in May, though at a slightly slower pace, despite flare-ups of Covid-19 around the region that has forced some plants to close and could weigh on sentiment
  • Visits to department stores on London’s Oxford Street and designer boutiques on Bond Street are increasing amid a global boom in “revenge spending,” with shoppers deploying cash saved during lockdowns on new wardrobes, accessories and cappuccino pit-stops
  • A supply glut that’s held down Dubai’s property prices for over half a decade will likely keep it on the sidelines of a global upswing in values of prime residential real estate
  • Overnight train rides are gaining popularity in Europe as the Continent aims to cut carbon emissions
  • Australia’s central bank maintained its policy settings as it prepares to decide on extending its yield target and quantitative easing programs. Meanwhile, Sydney house prices posted their largest quarterly gain in almost 33 years, as cashed-up buyers snapped up high-end properties amid low interest rates and a lack of supply
  • China’s surprise decision to allow all couples to have a third child may be too little too late to reverse the nation’s declining birthrate and shrinking workforce
  • Japanese firms cut investment at a faster pace last quarter as renewed measures to contain the coronavirus clouded the business outlook and discouraged spending
  • South Korea’s exports surged the most since 1988 in May as a reopening of overseas economies boosted demand for products manufactured by the Asian nation
  • After 30 years in Japan, former Goldman Sachs vice chair Kathy Matsui, known for research that shifted government policy on women at work, is starting a venture fund that could help put some of her ideas into practice

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