RBNZ Hike Query, Red-Hot Economy Worry, China Debt Fix: Eco Day

Michael Heath
·2 min read

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

It took one case of Covid-19 for New Zealand to impose a lockdown -- and for traders to question a rate hike that was seen as a done deal. An RBNZ hike now would be a mistake, says James McIntyreIf there’s a word that fits how Americans feel about their economy as another pandemic summer draws to a close, it could be: “meh”China could be making inroads in a long-standing battle to deal with local governments’ so-called “hidden-debt” as the economy’s rebound gives officials room to focus on tackling financial risksSingapore plans pilot programs to let vaccinated business travelers from some countries enter on controlled itineraries next monthFed Chair Jerome Powell predicted U.S. students forced to cope with the Covid-19 pandemic will become an “extraordinary generation”U.S. retail sales undershot forecasts in July -- supporting Bloomberg Economics’ projections for a softening of consumer spending growthSeeking to understand Beijing’s regulatory crackdown, some are looking over 4,500 miles away to an unlikely inspiration: BerlinTreasury Secretary Janet Yellen rejected criticism that the administration’s two-track legislative push for major spending bills on infrastructure and social programs amount to “overinvesting”Euro-area businesses stepped up hiring last quarter when pandemic restrictions started to ease and the economy returned to growthThe U.S. has frozen nearly $9.5 billion in assets belonging to the Afghan central bank and stopped shipments of cash. Republicans urged Janet Yellen to intervene at the IMF to prevent Taliban-led Afghanistan from being able to use almost $500 million in reservesInflation tops the list of worries for Norway’s wealth fund chiefQuadratic Capital Management’s Nancy Davis is warning that higher prices and slower growth could result in a return of stagflationMeticulously collected data and photographs support scientists’ initial hypothesis that Covid-19 stemmed from infected wild animals

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