The US and Korea managed to strike an important agreement this week and many recognize it as the first success of President Trump’s trade strategy and a turning point in general. The agreement is being offered as an innovative and a visionary development. Far from new, the US trade thrust is seen as a return […]
The Bank of England has provided some highlights update on the regulatory approach to preparations for EU withdrawal, released yesterday. Namely, BoE presumes that there will continue to be a high degree of supervisory cooperation between UK and EU post-Brexit and believes it will be difficult for all financial institutions to complete all of steps
With the new tariffs and fears of a trade war, after Trump allegedly intends to impose 25% import duty on 60bn worth of imports from China, markets are being shaken again after a short recess. Given how Trump has internalized the development in S&P500 during his presidential reign, we still judge that his appetite for
According to the Ifo Institute (Munich), KOF (Zurich) and Istat (Rome), robust economic growth of 0.6% can be expected in the first and second quarters of 2018 with marginal slowdown of growth to 0.5% in the third quarter. The key drivers of growth are investments, which will benefit from low interest rates, and rising capacity
Forex today was mainly driven by risk flows, with a major turnaround in the risk condition experienced amid ebbing fears over the US-China trade war. The WSJ reported that the US and China are quietly seeking trade solutions after last week’s war of words. Subsequently, the demand for the safe-havens such as the Yen, gold
In its latest monetary policy meeting, held yesterday, the BoE MPC voted 7-2 in favour of leaving benchmark interest rate unchanged at 0.50%. Meanwhile, it was a unanimous vote to keep asset purchase facility at £435 billion and corporate bond target at £10 billion. All in all, the statement from the Bank of England’s latest
Alongside positive steps made in Brexit talks this week, the UK wage data may give BoE a green light on rate hike to happen in May. At 2.6%, growth in average weekly earnings excluding bonuses suggests that wages are gathering momentum. Admittedly, the current year-on-year rate of growth says almost as much about the weakness
In the G20 meeting that concluded yesterday, analysts at Deutsche Bank have noticed that most global finance chiefs warned against protectionism with BOJ Governor Kuroda noting “the G20 will continue to emphasize the importance of free trade” while France’s Finance Minister Le Maire reiterated that there will only be losers in a trade war and
The markets were feeling a little indecisive last week given the unpredictable spate of headlines which seemed to come from the White House on an almost daily basis then there’s good news as we have the welcome distraction of a Fed meeting this week. Financial markets are pricing in a greater than 90% probability that
According to the German centre0-right, liberal-conservative newspaper, Frankfurter Allegemeine Zeitung, the European Commission is preparing member states for a trade war with the US over Trump’s steel and aluminum tariffs. It has obtained an internal memo from the European Commission that tells member states not to be ‘too optimistic” about obtaining steel and aluminum tariffs
