Pompeo Pressure, China’s Golden Tourism, Deficit Day: Eco Day

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

  • U.S. Secretary of State Michael Pompeo will meet with his counterparts from three other democratic countries in Tokyo, in a bid tokeep up the pressure on China
  • With the Covid-19 pandemic largely under control in China, the Golden Week holiday is showing the country’sconfidence in its rebound, as nearly half a billion people traveled domestically
  • Australia’s government will lay outa spending program to resuscitate the economy and generate jobs for the hundreds of thousands of people left unemployed by the pandemic
  • President Donald Trumpwalked out the front doors of the Walter Reed National Military Medical Center on Monday and boarded the presidential helicopter to return to the White House
  • South Korean companies arereluctant to relocate home from China, despite the governments’ best efforts to draw them back amid the pandemic and U.S.-China trade tensions highlighting the risks of over-reliance on China as a manufacturing base
  • A stronger-than-expected U.S. rebound in the third quarter still leaves 2020 as the worst full-year contraction in the post-WWII record. The sustainability of the recovery going into 2021remains an open question as the spike in Covid-19 infections and stimulus gridlock cloud the outlook, write Yelena Shulyatyeva
  • Federal Reserve Bank of Cleveland President Loretta Mester favors considering whether to concentrate the central bank’s bond buyingmore on longer-dated maturities
  • Frank Elderson is on course to become thefirst Dutchman in 17 years to serve on the ECB’s top policy team after he prevailed over his Slovenian rival for the job
  • The U.K. labor market is about to go througha shock not seen in a generation. And BOE policy maker Jonathan Haskel said he’s prepared to backmore monetary support for the U.K. if necessary, warning that the near-term risks to the economy lie to the downside
  • The IMF said the Brazilian economy faces “exceptionally high and multifaceted” risks as it continues to grapple with the coronavirus pandemic and its impact on the country’s debt dynamics
  • Even though 2020 saw global business activity sacrificed to contain the spread of the virus, economists say that policymakers are likely toremain focused on growth metrics

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