‘Green Swan’ Risks, Macron-Trump Truce, China Slowdown: Eco Day

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

• Climate change threatens to provoke “green swan” events that could trigger a systemic financial crisis unless authorities act, according to the Bank for International Settlements
• Presidents Emmanuel Macron and Donald Trump agreed to a truce in their dispute over digital taxes that will mean neither France nor the U.S. will impose punitive tariffs this year
• Most of China’s provinces are expecting slower economic growth in 2020, underlining the nationwide trend which is expected to result in a tweaking of the formal goal when the legislature meets in March
• A new SARS-like virus that originated in central China is spreading from person-to-person and has sickened medical workers, heightening concern about wider transmission. China’s food markets could prove to be the breeding ground
• The IMF predicted the world economy will strengthen in 2020, albeit at a slightly weaker pace than previously anticipated. Meantime, the proportion of CEOs expecting global growth to slow in the coming year has risen 10-fold since 2018
• In the country that’s had negative interest rates longer than anywhere else, confused Danes have turned on economists as citizens fail to see the upside of unconventional policies
• From banks to farmers to the property market, the gains from India’s 2019 budget haven’t yet panned out as expected
• Indonesia is set to overhaul its nearly two-decade old labor law and scrap an array of rules that hinder foreign investment as President Joko Widodo seeks to transition the economy from a commodity reliant one into a manufacturing hub
• Moody’s Investors Service lowered Hong Kong’s rating as a long-term issuer of debt by one notch on Monday, just months after Fitch Ratings took a similar action amid political protests
• The diversity of views at Davos 2020 will be thrown into sharp relief on the opening day as Trump and climate change campaigner Greta Thunberg compete for the spotlight, writes Simon Kennedy in the Davos Diary

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