Trump Threats, Pipeline Punishment, Divorce Discord: Eco Day

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

  • President Donald Trump said he intends to curb the U.S. economic relationship with China, by threatening to punish companies that create jobs overseas and forbid those that do business in China from winning federal contracts
  • Chancellor Angela Merkel opened the door to taking action against the Nord Stream 2 gas pipeline as Germany and its allies mull a response to the poisoning of Russian opposition leader Alexey Navalny
  • The European Union told Boris Johnson not to tear up parts of the Brexit divorce accord, saying it will be essential to reach a trade deal. Johnson’s threat to walk away is leaving most economists and traders unruffled for now
  • Lenders will have to consider financial parameters — such as liquidity and debt-servicing ratios — while preparing a restructuring plan for loan accounts that have turned bad due to the pandemic, the Reserve Bank of India said
  • Meanwhile, the virus is arriving with a vengeance in India’s vast hinterland where 70% of its more than 1.3 billion citizens live, and the result is likely to be a human and economic catastrophe
  • China is usually the No. 2 producer of corn, but as growing areas in the northeast are being whacked by three typhoons, the country is now set to become the world’s No. 1 buyer of the crop
  • U.K. firms are warning they will struggle to pay back government-backed financial support they received during lockdown. Meanwhile, BOE Chief Economist Andy Haldane warned against extending the government’s flagship coronavirus furlough program
  • Argentina has officially emerged from its ninth default after S&P Global raised its credit rating following the restructuring of $65 billion of overseas debt

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