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Livesquawk - European Briefing - Friday 10.09
European Briefing - Friday 10.09
Headlines
  • Biden And Xi Discuss Managing Competition And Avoiding Conflict In Call
  • House Democrat Indicates She'll Oppose Parts Of $3.5T Spending Package
  • Yellen Warns Of Financial System Risk If The Debt Ceiling Is Not Raised
  • Fed's Bowman Encouraged Still By Recovery, Sees Taper Likely This Year
  • EU Hawks Set Tough Terms For Talks On Post Covid Reform Of Fiscal Rules
  • France Sees Lower Than Expected Budget Deficit On Economic Rebound
  • Goldman Sachs Sees A Messier UK Furlough End Delaying BoE Rate Hike
  • China Lobbies Australia For Help To Join Regional Trade Pact Despite Spat
  • Australia’s Two Major States See A Record Daily Increase In Covid Cases
  • US Yields Drop After Stellar 30-Year Auction; Dealers Take Historic Low
  • Oil Slips On China's Plan To Release Crude Reserves, Airline Demand Woes
  • Asian Equity Markets Rally; Shanghai Composite Surpasses February High
Commentary
Biden, Xi Discuss Need To Avoid Conflict Amid Global Competition

President Joe Biden told Chinese leader Xi Jinping late Thursday that the United States wants to “responsibly manage the competition” between the two countries, in hopes of avoiding conflict.

 

The two leaders held their second call since Biden took office at a time when Washington and Beijing are increasingly at odds on issues ranging from cybersecurity to trade, and the White House stressed that the discussion was about high-level themes.

 

A senior Biden administration official said the call lasted around 90 minutes, and that the tone was candid and familiar. Both Biden and especially Xi referred to their past personal interactions, the official said. (Politico - Continue Reading)

ECB Finally Checks In With Reality

The only tangible change at the ECB meeting was an end to the front-loading of asset purchases under the Pandemic Emergency Purchase Programme or, as ECB President Christine Lagarde called it, ‘a recalibration’.

 

Instead of the ‘significantly higher pace’ of purchases than at the start of the year, the ECB will now conduct the purchases at ‘a moderately lower pace than in the previous two quarters’.

 

As latest figures had shown that the ECB had already bought less (around 65bn euro) in recent months, today’s announcement is probably more about catching up with reality than any sign of coming tapering.

 

What a ‘moderately lower pace’ will actually mean in practice remains unclear. We expect the ECB to continue purchasing between 60bn to 70bn euro per month until the end of the year. (ING Think - Continue Reading)

Goldman Sees A Messier UK Furlough End Delaying BoE Rate Hike

A messier end to the U.K. furlough program than the Bank of England expects will prompt the central bank to delay raising interest rates, according to Goldman Sachs Group Inc.

 

While investors expect the BOE to hike its benchmark rate in May, with 28 basis points of cumulative increases by the end of 2022, economists at Goldman Sachs don’t anticipate borrowing costs will rise until the third quarter of 2023.

 

That’s because the U.S. bank judges that there’s more slack in the economy than the BOE estimates, and its U.K. chief economist Steffan Ball said the situation could worsen when the government’s wage-support program ends on Sept. 30. (Bloomberg - Continue Reading)

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