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Livesquawk - European Briefing - Wednesday 24.02
European Briefing - Wednesday 24.02
Headlines
  • House Majority Leader Hoyer: House Will Vote On Covid Relief Bill Friday
  • Biden Invites Lawmakers To The White House For Talks On Chip Shortage
  • Top Senate Democrat Directs Lawmakers To Craft Bill To Counter China
  • Fauci: Relaxed Guidance For Fully Vaccinated People May Be Coming Soon
  • Merkel Warns Of Third Virus Wave As Germany Weighs Ending Lockdown
  • End To UK Lockdown Could Come Sooner If Vaccines Exceed Expectations
  • Hong Kong Government Raises Stamp Duty On Stock Trading To 0.13%
  • Japanese Finance Minister Aso: Not Considering Fresh Economic Stimulus
  • RBNZ Leave Policy Unchanged; Signals Patient Approach Going Forward
  • Oil Prices Slip After Crude Stocks Rise Amid Deep Freeze Hit To Refiners
  • Asian Equity Markets Fall; Hang Seng Drops 2% On Stamp Duty Increase
Commentary
Biden Trade Czar Tai Eagerly Awaited In Washington And Brussels

Katherine Tai, President Joe Biden’s pick to revamp U.S. trade policy to focus on workers and “ordinary Americans” over corporations, will get a chance to explain what that will mean in practice at her confirmation hearing on Thursday.

 

Tai’s testimony before the Senate Finance Committee has been anxiously awaited for months by industry, U.S. trading partners from Beijing to Brussels, labor groups and lawmakers - all in a long queue to lobby Tai as soon as she is confirmed.

 

As U.S. trade representative, or trade “czar,” for the world’s largest economy, biggest importer of goods and second largest exporter after China, Tai will wield immense clout, especially after four years of trade turmoil sown by former President Donald Trump. (Reuters - Continue Reading)

Get Ready For Another Global Equity Rotation, Warns UBS

Tightening financial conditions will likely lead to a “phase change” in global markets in the second quarter, resulting in lower overall returns and favoring growth stocks over value, according to UBS Group AG.

 

A shift from a liquidity-driven market to one based on growth and earnings will come as inflation enthusiasm peaks and will precede any tapering of Federal Reserve support, wrote strategists including Bhanu Baweja in a note Monday. This regime change will be marked by a bottoming in real rates and credit spreads -- which will signal the end of the liquidity “tailwind,” they said.

 

“While these changes don’t imply a big drawdown, they do make for an important change in the nature of the rally,” the strategists wrote. “Liquidity tailwinds have been the biggest contributor to market gains.” (Bloomberg - Continue Reading)

RBNZ Stands Pat On Policy; Signals Patient Approach To Policy

The New Zealand central bank left their monetary policy settings unchanged on Wednesday and policymakers agreed to maintain the current stance until the inflation and employment remit had been met.

 

The official cash rate (OCR) was held at a record low of 0.25% while the large-scale asset purchase programme (LSAP) will continue with purchases of up to NZD 100 Bln by June 2022. The conditions attached to the Funding for Lending Programme (FLP) were also unchanged.

 

“The Committee agreed to maintain its current stimulatory monetary settings until it is confident that consumer price inflation will be sustained at the 2 percent per annum target midpoint, and that employment is at or above its maximum sustainable level,” the RBNZ said in a statement. (LiveSquawk - Continue Reading)

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