US Briefing - Tuesday 14.01
Headlines
  • China To Ramp Up US Car, Aircraft, Energy Purchases In Trade Deal
  • GT: China To Encourage Firms To Boost Imports Of US Mfg, Agriculture Goods
  • US Drops China As Currency Manipulator Ahead Of Trade Deal
  • SCMP: China, US May Not Release Full Phase 1 Deal Details This Week
  • China FM: Will Keep The Yuan Level Basically Stable
  • USTR Lighthizer: Nearly Done With Translation Of China Trade Deal
  • ECB’s Mersch: EZ Economy, Inflation Showing Signs Of Stabilization
  • Moody's Downgrades 2020 Euro Area Sovereign Outlook To Negative
  • France, Germany, Britain Trigger Iran Nuclear Dispute Mechanism
  • UK PM Johnson: V.Likely UK Secures EU Trade Deal By Year-End
  • US Treasury Adds Swiss Franc Back To Its Currency Watch List
  • Oil Snaps 4 Days Of Declines Ahead Of US-China Deal Signing
  • Yen>110; Gold Sags As Haven Need Wanes On Phase 1 Deal Hopes
  • JP Morgan 4Q Rev, EPS Smash Estimates, Beats On 1Q20 NII Estimates
  • Delta Airlines 4Q Earnings And Revenue Beat Estimates
  • Visa Buys Financial Technology Company Plaid For $5.3Bln
Commentary
China Huge US Trade War Deal Commitments Confirmed

The trade deal to be signed this week will include pledges by China to buy US$200 billion of US goods over two years in four industries, a Trump administration official and two other sources briefed on the matter said. The target for manufactured goods purchases will be the largest, worth around US$75 billion.

 

China will also promise to buy  US$50 billion worth of energy, US$40 billion in agriculture and US$35 billion to US$40 billion in services, the three people said.

 

On Monday night, meanwhile, the United States removed China from a list of currency manipulators, a sign that the relationship between the world’s two largest economies was thawing slightly in the lead up to the signing of the phase one deal.

“In this context, Treasury has determined that China should no longer be designated as a currency manipulator at this time,” the Treasury said. (SCMP – Continue Reading)

German 2019 Growth Set To Show Sharp Slowdown

Frankfurt, 13 January 2020 (LS NEWS) – Europe’s largest economy is expected to report the lowest growth rate since 2013 as the country’s manufacturing industry continues to struggle.

 

A survey of economists said annual growth will fall to 0.6pct, just over a third of the 1.5pct increase in 2018 and near the 0.5pct rate in 2012 and 2013. In the past, the German statistics office Destatis has released a preliminary figure for the fourth quarter along with the first estimate of annual growth, but a spokesman said Tuesday there would be "no hard number" for  the final three months of last year.

 

Germany barely skirted a recession last year when quarterly growth in the three months to October eked out a gain of 0.1pct following a 0.1pct decline in the second quarter. (LiveSquawk – Continue Reading)

RBS Sees Interest-Rate Cut This Month After BoE’s Dovish Shift

The Bank of England’s dovish shift in the past week has already rippled through markets, and now economists are starting to react too.

 

Royal Bank of Scotland Group (LON:RBS) Plc changed its interest-rate forecast and now sees a cut to 0.5% from 0.75% at this month’s meeting. It also sees a second reduction later in the year, having previously predicted no move by the BOE at all until May.

 

RBS’s change of view may be followed by others after Governor Mark Carney and other policy makers said the BOE is looking at whether more stimulus is needed for the economy. Those comments have already sent the pound on its worst losing streak since May, and market bets on a rate cut on Jan. 30 have jumped to around 50%. (Reuters – Continue Reading)

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