Fed Needs Insurance, Robots and Strongmen, Canada Rises: Eco Day

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

• Carl J. Riccadonna notes U.S. policy makers have broadly passed on the opportunity to lean against market expectations for a 25-basis point rate cut at the October FOMC meeting. But the bigger question, he says, will be the willingness of officials to undertake additional reductions
• Robots and strongmen are threatening the future of the world’s hottest economies
• Canada is set to have the highest policy interest rate among the world’s major economies by the end of the day
• The BOJ is likely to save its limited ammunition for a clearer deterioration of economic conditions when it meets Thursday, just hours after an expected cut by the Fed
• Malaysia is trying to overcome its reliance on low-skilled foreign workers as it tries to move up the economic ladder. But that’s hurting some key industries in the country
• Australian central bank chief Philip Lowe reiterated that he’s prepared to ease further if needed, but again pushed back against the idea of interest rates turning negative. Meantime, the nation’s largest lender reckons rate cuts are actually spooking consumers, while Deloitte is backing Lowe’s infrastructure push
• With the Fed projected to cut, a slew of economic reports this week will play a key role in whether it needs to keep easing or can take a breather. GDP probably slowed as an increasing burden falls on consumers to support growth, writes Eliza Winge. Indeed, manufacturing is now the smallest share of the U.S. economy in 72 years
• Disloyalty pays. Britons who moved jobs saw their pay surge by 8% in the last year as labor shortages handed candidates significant bargaining power.

To contact the reporter on this story: Michael Heath in Sydney at mheath1@bloomberg.net

To contact the editors responsible for this story: Nasreen Seria at nseria@bloomberg.net, Jason Clenfield

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