Closing Wrap - Tuesday 15.09
Headlines
  • WTO: US Violated Trade Rules With Tariffs On China
  • US To Remove Tariffs On Canadian Aluminium If Imports Stay Within Limits
  • Canada Drops Threat Of Imposing Retaliatory Sanctions Against US Aluminium
  • Canada Not Ruling Out Lockdown Amid Covid-19 Surge, Eyes 'Surgical Approach'
  • Bipartisan US Lawmakers To Unveil $1.5 Tln COVID-19 Aid Bill
  • Britain Has Moved To Break Fisheries Deadlock In Brexit Trade Talks
  • Apple Releases New Watch And iPad, But No Sign Of The iPhone 12
  • TikTok To Become Standalone US Company To Satisfy White House
  • AstraZeneca Resumes Vaccine Tests In South Africa After Halt
  • Some Volunteers Quit J&J COVID-19 Trial In Spain After AstraZeneca Scare
Commentary
Fed In No Hurry To Raise Rates Or Change Narrative

Fed Chair Jerome Powell’s speech for the Jackson Hole Symposium  has set the Federal Reserve's position for what it expects to be a long fight against the adverse economic effects of Covid-19. Investors will want more of an explanation as to what this entails but may come away disappointed with the lack of any detail.

 

The Federal Open Market Committee (FOMC) is expected to leave rates and quantitative easing (QE) programmes untouched at the conclusion of its two-day meeting on Wednesday. However, there is potential for the board to further tweak forward guidance.

 

Fed governors will also present an updated Summary of Economic Projections (SEP) in what will be the last scheduled meeting ahead of the 3 November Presidential election. (LiveSquawk - Continue Reading)

German Investor Confidence Hits 20-year High

Investor confidence in Europe’s largest economy has hit its highest level in more than two decades despite floundering Brexit talks, signs of a second wave of coronavirus cases, and further evidence that the recovery in the region could be slowing.

 

German headline consumer confidence, a measure of the outlook for the next six months, rose unexpectedly this month to 77.4 points, its best mark since March 2000, the German ZEW thinktank reported on Tuesday. This beat the market estimate of 69.8 and the August reading of 71.5, the highest result since January 2004.

 

The current conditions index increased to -66.2 to exceed both the market estimate of -72.0 and -81.3 last month, according to the ZEW’s monthly survey of investors and financial market experts.

 

“The overall outlook has improved significantly compared to the previous month,” the ZEW said, citing the rise in both readings.

 

Both indices for the Eurozone also recorded increases, the thinktank noted. (LiveSquawk - Continue Reading)

US Violated Trade Rules With Tariffs On China, WTO Says

The World Trade Organization undercut the main justification for President Donald Trump’s trade war against China, saying that American tariffs on Chinese goods violate international rules.

 

A panel of three WTO trade experts on Tuesday said the U.S. broke international rules when it imposed tariffs on Chinese goods in 2018. Washington has imposed levies on more than $550 billion in Chinese exports.

 

The panel said in its report “that the United States had not met its burden of demonstrating that the measures are provisionally justified.”

 

While the ruling bolsters Beijing’s claims, Washington can effectively veto the decision by lodging an appeal at any point in the next 60 days. That’s because the Trump administration has already paralyzed the WTO’s appellate body, a tactic that has rendered toothless the world’s foremost arbiter of trade. (Bloomberg - Continue Reading)

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