Disinflation Doubts, Fed Steer, India’s China Reliance: Eco Day

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

• The Covid-19 shock might not be as disinflationary as it appears, writes Bjorn van Roye
• Fed officials showed no readiness to commit to yield-curve control, but did reveal an eagerness to provide more guidance
• India's economic ties with China run deep, making the recent escalation in tensions all the more worrying for businesses
• The U.S. House of Representatives passed a bill imposing sanctions on banks that do business with Chinese officials involved in cracking down on pro-democracy protesters in Hong Kong
• China's central bank is slowing the pace of monetary easing amid signs of economic recovery, handing disappointment to investors who have worried about tightening liquidity and rising bond yields
• South Korean consumer prices failed to rise in June despite cash handouts from the government to spur spending
• Sweden's central bank ramped up its stimulus and pledged to buy corporate bonds in a bid to brake the Nordic economy's freefall
• ECB chief economist Philip Lane said the institution is not trying to control bond yields across the euro zone, batting back the idea of using the policy to support the economic recovery
• While Australia's borders remain firmly closed to overseas visitors, the government plans to make a notable exception as it races to save its fourth-biggest export: Education
• Hong Kong faced a new reality as China began enforcing a sweeping security law that could reshape the financial hub's character 23 years after Beijing took control of the former British colony

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