China Bank Boost, Xi Defends China Model, U.S. Consumer

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

• China’s central bank is boosting the supply of cheap funding to banks by cutting reserve requirements, a bid to put a floor under 2020 economic growth; here’s the Bloomberg Economics take on the move
• Deal on. The U.S.-Japan trade deal took effect Wednesday, cutting tariffs on some agricultural products and industrial goods
• Winning strategy. President Xi Jinping defended China’s system for running Hong Kong in a confident New year’s Eve address
• Mixed sentiment. U.S. consumer confidence stayed lukewarm through year’s end and probably will show a tepid shopping season, Bloomberg Economics analysis shows

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