US Briefing - Wednesday 12.02
Headlines
  • Coronavirus Cases Fall, Experts Disagree Over Whether Peak Is Near
  • Trump Security Adviser: Coronavirus Could Impact China Trade Deal
  • Sanders Wins New Hampshire Primary; Buttigieg A Close Second
  • Fed's Kashkari: Monetary Policy Is Not Very Accommodative
  • ECB's Makhlouf: Potential For A Negative Growth Shock On Coronavirus
  • Eurozone Industrial Production Plummeted In December; Down 4.1% YoY
  • Riksbank Leaves Repo Rate On Hold; Lowers Inflation Forecasts
  • Dollar Holds Near Four-Month High On Hopes Virus Is Stabilising
  • Oil Jumps As Fuel Demand Concerns Ease; Brent Tops $55/Barrel
  • OPEC Slashes Oil Demand Outlook For 2020 As Coronavirus Stifles China
  • European Equity Markets Head To Fresh Records On Upbeat Earnings
Commentary
What's Next For Democratic Presidential Candidates

If there’s one thing Tuesday’s New Hampshire primary made clear, it’s that Democrats are no closer to agreeing on the right candidate to beat Republican President Donald Trump in November.

 

The two leading candidates from Iowa’s caucus, Senator Bernie Sanders and former South Bend, Indiana, Mayor Pete Buttigieg, stayed at the top of the field. But Senator Amy Klobuchar surged to third, throwing the viability of both Senator Elizabeth Warren and former Vice President Joe Biden into question.

 

 No candidate exceeded 30% of the vote - a muddled outcome that could end up helping billionaire Michael Bloomberg, a moderate candidate who wasn’t even on the ballot. (RTRS - Continue Reading)

City Of London’s Post-Brexit Outlook Dimmed By Political Spat

Talks on the post-Brexit future of European capital markets have largely avoided the toxic haggling of the broader negotiations -- until now.

 

U.K. Chancellor of the Exchequer Sajid Javid and chief European Union negotiator Michel Barnier traded blows Tuesday as the two sides approach a self-imposed June deadline to make progress. The flashpoint is the very foundation of the future relationship: A policy called “equivalence” that would give U.K. firms continued access to the single market.

 

“I will have a bottle of champagne if the chancellor gets equivalence over the line,” said Alasdair Haynes, CEO of Aquis Exchange Plc, a pan-European equities venue in London. Without it, he said, “we will have a hard Brexit, costs will rise, we will all have to open offices in Europe and it will be very poor for business.” (Bloomberg - Continue Reading)

UK GDP: Volatile Year For Growth Finishes On Subdued Note

Underlying UK activity came to a halt at then end of last year, but the country’s performance compared favourably to its closest neighbours over the period, according to data from the Office for National Statistics. The ONS said UK GDP growth was flat in the fourth quarter compared to the previous three months, which was in-line with forecasts. This followed revised quarterly growth of 0.5pct from July to September.

 

The economy expanded at an annual rate of 1.1pct year-on-year in the fourth quarter, down from a revised 1.2pct in the previous three months. Growth in December hit a monthly rate of 0.3pct to beat the 0.2pct consensus.

 

In terms of output, positive contributions included gains in services and construction. Despite a slowdown in private consumption growth to a quarterly rate of 0.1pct in the fourth quarter from 0.4pct in the third, the sector—alongside government spending—helped expenditure growth. Negative contributions came from production and gross capital formation. (LiveSquawk - Continue Reading)

German GDP Set For Slight Q4 Growth - Preview

Germany is expected to announce minimal growth for the final quarter of last year, but a growing number of analysts say Europe’s largest economy contracted in the last three months of 2019, which could lead to a downward revision for the entire Eurozone.

 

As part of last month’s announcement of Germany’s annual GDP expansion rates for 2019, a spokeswoman for the German statistics office Destatis said the country recorded a “small increase” in growth during the fourth quarter.

 

A poll of economists forecasts a quarterly German GDP rise of 0.1pct for the fourth quarter, which would match the rate in the previous three-month period. Price-adjusted GDP growth last year fell to 0.6pct, the lowest rate since 2013, Destatis said in January. (LiveSquawk - Continue Reading)

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