Bank Caps Continue, ECB Mulls Inflation, One More Day: Eco Day

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

  • The Fed hasextended through the rest of the year its unprecedented constraints on dividend payments and share buybacks for the biggest U.S. banks because of ongoing “economic uncertainty from the coronavirus response”
  • ECB President Christine Lagarde said it’sworth examining a Federal Reserve-style strategy that allows inflation to temporarily rise above the institution’s target
  • House leaders postponed a vote on a Democrat-only stimulus bill to give Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosione more day to negotiate a compromise relief package
  • The Trump administration plans toannounce an investigation into Vietnam’s currency practices, according to three people familiar with the matter
  • The Philippine central bank is set to leave itskey interest rate unchanged for a second straight meeting, allowing previous stimulus steps to work their way through an economy in recession
  • Tens of thousands of job cuts announced by blue-chip companies in a 24-hour periodare a warning sign for the world’s recovery and emerge just ahead of two key reports forecast to show limited progress in the U.S. labor market
  • Australia’s Prime Minister Scott Morrison will deliverhis latest rescue plan Tuesday: a federal budget expected to include accelerated tax cuts and infrastructure spending
  • Bloomberg Economics’ Yuki Masujima haslowered Japan’s GDP growth forecast for 2021 and see the expansion slowing in 2022
  • Some $20 trillion of stimulus from governments and central banks has pulled the world’s economies almost back to pre-pandemic levels. But, thelast stretch is set to be the hardest
  • Women helped pull the U.S. economy out of the last recession. This time aroundthey are falling behind

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