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Livesquawk - European Briefing - Thursday 29.04
European Briefing - Thursday 29.04
Headlines
  • Fed Holds Rates Near Zero, Powell Waves Inflation Fears Away
  • Biden Offers Ambitious, Expensive Plan In Speech To Congress
  • US Senate Democrats Resist Biden's $1.8 Trillion Pay-For Plan
  • US Commerce Chief Pledges Help Businesses Export To China
  • US Eyes Major Rollback In Iran Sanctions To Revive Nuke Deal
  • US, EU Race To Avoid June Escalation In Metals Tariff Dispute
  • EU Commission Vows Tough Rules To Place Recovery Stimulus
  • UK Formally Recognise EU Ambassador First Time Since Brexit
  • UK Urged Adopt Furlough-Style Benefits After Pandemic Crisis
  • Apple Soars Past Sales, Profit Targets, Warns Of Chip Shortages
  • Amazon Spending $1Bln On Hourly Workers Early Pay Increase
  • BMW Finally Buckles Under The Strain Of Global Chip Shortage
Commentary
Fed Sees Economy Improving As Holds Steady On Rates, QE

The US Federal Reserve did what virtually everyone expected on Wednesday: Nothing. Policymakers decided to retain the benchmark interest rate at 0% - 0.25% and monthly asset purchases at USD 120bln, but they also offered a slightly rosier forecast for the world’s biggest economy.

 

 In its statement, the Fed said: “The ongoing public health crisis continues to weigh on the economy, and risks to the economic outlook remain,” dropping “considerable” from the end of the sentence to signal a incremental improvement in expectations. Indicators for growth and employment have “strengthened” instead of merely having “turned up recently”.

 

The Fed also cited “progress on vaccinations and strong policy support”. Sectors hit by the pandemic remain weak “but have shown improvement”, the Fed corrected, adding that inflation has risen, which largely reflects “transitory factors”. (LiveSquawk - Continue Reading)

Biden Lays Out Expensive Plan To Emerge From Pandemic

President Joe Biden on Wednesday night outlined an optimistic vision after a year wracked by a deadly virus and incalculable struggles in America and abroad. Biden said he “inherited a nation in crisis,” one that is now "on the move again,” and “turning peril into possibility.”

 

The speech marks an early victory lap for a White House fashioning itself as having one of the most consequential starts to a presidency in American history. It is also an opportunity to build momentum for two proposals — the American Jobs Plan and the American Families Plan — that, if enacted, would alter the course of the country for decades to come.

 

Biden is framing the spending blueprints, which carry a combined price tag of about $4 trillion over the next decade, as a necessary corrective to rebuild the foundation of the middle class and society writ large at a time when trust in government is on the wane. (Politico - Continue Reading)

US, EU Race To Avoid June Metals Tariff Escalation Dispute

The Biden administration is in talks with the European Union to avoid an escalation in a dispute over tariffs on European metals exports as the transatlantic alliance tries to repair their economic counterweight against China, people familiar with the matter said.

 

Commerce Secretary Gina Raimondo, on a call with EU trade chief Valdis Dombrovskis last week, inquired about what could be done to avoid a looming escalation of European tariffs, according to the people, who asked not to be named discussing private talks.

 

At issue is a high-profile dispute that started in 2018 under former President Donald Trump that saw the US impose duties on steel and aluminium from Europe, Asia and elsewhere over risks to American national security. (BBG - Continue Reading)

Files & Links
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APAC GOVERNMENT/CENTRAL BANKS
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