ECB Stimulus Ready, Lost Decade, Mulling New Sanctions: Eco Day

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

  • The ECB is ready to deploy more monetary stimulus to aid the recovery if needed as the pandemic damps prospects for the economy, according to President Christine Lagarde
  • Japan’s lost decades provide a model of a low-growth, high-debt future for a virus-stricken world
  • The Trump administration is considering fresh sanctions to sever Iran’s economy from the outside world by targeting more than a dozen banks and labeling the entire financial sector off-limits
  • The Reserve Bank of India’s decision to defer this week’s interest-rate meeting underscores the government’s failure to act in time to support an economy facing its worst contraction in history
  • House Democrats released a $2.2 trillion proposal to extend support to the U.S. economy. Meanwhile, the economy can’t reach its potential unless gaps in equality are addressed, said Federal Reserve Bank of Cleveland President Loretta Mester
  • Democratic presidential candidate Joe Biden is preparing to face tough questions in Tuesday’s debate on how he would approach China if he wins the White House in November
  • China’s imports of American goods in the first eight month only reached about 32.8% of the total target for 2020 set in the phase one trade pact with the U.S.
  • The U.K. could be facing a long-term increase in the size of the state as well as a substantial tax increase as a result of the coronavirus pandemic, according to the Institute for Fiscal Studies
  • This Christmas will be one of exorbitant spending and lavish gifts for many and one of tight budgets and difficulty putting food on the table for many others. That’s the effect of the pandemic recession, which is exacerbating inequalities between the rich and the poor
  • Central bankers used to bail out financial institutions. During the pandemic, they’ve given money to a motley cast of unlikely beneficiaries. Will it ever end?

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