European Briefing - Tuesday 03.12
Headlines
  • China Hints US Blacklist & Visa Restrictions Imminent In Threat To Trade Talks
  • Trump Administration Proposes Tariffs Against $2.4 Billion Of French Goods
  • New York Fed Adds Liquidity Amid Heavy Demand For Year-End Funding
  • Trump Blames Fed For Industrial Slowdown Spurred By Fading Growth
  • US Considers Easing Drug Protections To Break USMCA Trade Deadlock
  • US Senator: USMCA Ratification This Year Unlikely If No Deal This Week
  • Japan Preparing $120 Billion Stimulus Package As Recession Risks Grow
  • Australia Holds Fire On Cash Rate Cut But Maintains Easing Bias
  • UK PM To Downplay Ties To Trump Amid Claims Of NHS Sell-Off
  • UK Shoppers Cast Off Brexit Blues To Spend More In November
  • Dollar Nurses Wounds As Factory Data Sparks Economy Concern
  • Asia Stocks Slip As Trump Moves To Reimpose Tariffs On Brazil
Commentary
China Hints US Blacklist Imminent In Threat To Trade Talks

Chinese state media said the government will soon publish a list of “unreliable entities” that could lead to sanctions against US companies, signalling that trade talks between the two nations are increasingly under threat from disputes over human rights in Hong Kong and Xinjiang.

 

The Communist Party-backed Global Times said in a tweet early Tuesday that the list was being sped up in response to a bill sponsored by Republican Senator Marco Rubio requiring measures against Chinese officials involved in alleged abuses of Uighur Muslims in the far west region of Xinjiang.

 

Global Times Editor-in-Chief Hu Xijin went further on Twitter, saying that US officials may face visa restrictions and US passport holders could be banned from entering the province. China stands accused of incarcerating as many as a million Uighurs as part of an anti-terrorism campaign, actions it describes as voluntary re-education. (BBG – Continue Reading)

Trump Administration Proposes Tariffs Against $2.4 Billion Of French Goods

The Trump administration proposed tariffs of up to 100% against $2.4 billion of French imports, saying the nation’s new digital-services tax unfairly targets US tech companies such as Apple Inc. and Alphabet Inc.’s Google unit.

 

The French tax, which was signed into law July 24, applies a 3% tax on revenue that tech companies reap in France from such activities as undertaking targeted advertising or running a digital marketplace.

 

In an investigation released late Monday, the US Trade Representative’s office said the Digital Services Tax, or DST, applies largely to services where US companies are dominant and doesn’t tax services where French companies are more successful. (WSJ – Continue Reading)

Europe Set For Green Deal That Will Radically Change Its Economy

The European Union is gearing up for the world’s most ambitious policy against climate change -- requiring a radical overhaul of the economy -- at a summit in Brussels next week.

 

The bloc’s leaders will commit to cutting net greenhouse-gas emissions to zero by 2050, according to a draft joint statement for the Dec. 12-13 meeting. The EU will promise more green investment, and consider easing its ban on state subsidies for companies, and taxing imports from countries that fall short on environmental standards

 

“If our common goal is to be a climate-neutral continent in 2050, we have to act now,” Ursula von der Leyen, president of the European Commission, told a United Nations climate conference on Monday. “It’s a generational transition we have to go through.” (BBG – Continue Reading)

Files & Links
DATA
APAC GOVERNMENT/CENTRAL BANKS
EUROPEAN/AMERICAS GOVERNMENT/CENTRAL BANKS
FX
FIXED INCOME
COMMODITIES/ENERGY
APAC EQUITIES
EUROPEAN/US EQUITIES