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Livesquawk - European Briefing - Thursday 25.11
European Briefing - Thursday 25.11
Headlines
  • Fed Officials Stress Flexibility On Taper Pace At Last Meeting
  • US Put Chinese Companies Aiding Military On Trade Blacklist
  • Israel Warn White House On Striking Nuclear Deal With Iran
  • Russia Move Forces To Crimea In Ukraine Build-Up, Analysts
  • China Urge Local Governments Spend More To Offset Slump
  • Japan To Show Budget In $312Bln Spending To Tackle Covid
  • Bank Of Korea Raises Rates Again, See Faster 2022 Inflation
  • RBNZ Orr Signal Cautious Policy Approach With Small Steps
  • EU To Delay Contentious Rules On $59Tln Securities Market
  • UK Dial Down Brexit Threat While Progress Made In EU Talk
  • German Covid Deaths Pass 100,000 As Infection Still Spiking
  • OPEC Forecasts Releases May Greatly Swell Global Surplus
Commentary
Federal Reserve Likely To Become Tougher Talking Central Bank

Expect more tough talk from the Federal Reserve, as it may consider winding down its bond program sooner than expected. Based on comments from several Fed officials, market pros now expect the central bank to discuss at the December 14-15 meeting whether they should move even faster to end their quantitative easing program.

 

“They’re going to accelerate tapering in December, and it now looks like growth could easily cross 6% and could approach 7% in the fourth quarter,” said Diane Swonk, chief economist at Grant Thornton. “The economy is strong and hot. It’s not a bad thing. It’s a boom. You can’t escape it. The Fed has to adjust.”

 

Even if it doesn’t decide to cut back on more bond purchases in December, the Fed’s tone should sound much more hawkish than it has previously in the post-pandemic era. “If they want to have any distance whatsoever between tapering and liftoff, they need to get it out of the way. It’s justified. We have a strong economy,” Swonk said. (CNBC - Continue Reading)

China's Seven-Week Port Quarantine Snarls Supply Chain Further

China’s increasingly extreme Covid Zero policies are standing in the way of a full recovery for the shipping industry and prolonging a crisis that’s snarled ports and emptied shelves worldwide. 

 

In its attempts to keep the virus out, China’s continued to prohibit crew changes for foreign crew and recently imposed as much as a seven-week mandatory quarantine for returning Chinese seafarers. Even vessels that have refreshed their crew elsewhere have to wait two weeks before they’re allowed to port in China.

 

To comply, shipowners and managers have had to reroute ships, delaying shipments and crew changes, adding to the supply chain crisis. “China’s restrictions cause knock-on effects,” said Guy Platten, the secretary general of the International Chamber of Shipping, which represents shipowners and operators. (BBG - Continue Reading)

German Covid Deaths Pass 100,000 With Infections Still Spiking

Germany passed the threshold of 100,000 Covid-19 deaths, with the latest wave of the pandemic still pushing new infections higher and hospitals in some hotspots under severe pressure.

 

Since the pandemic took hold at the beginning of last year, 100,119 people have died from the virus, according to the latest data from the RKI public-health institute. The number roughly equals the population of mid-sized German cities like Erlangen or Guetersloh.

 

Germany’s hospitals are nonetheless becoming increasingly overwhelmed in some regions, and the government’s latest measures have yet to show a tangible effect. With infections climbing further and authorities slow to act amid a change in power, experts warn that another lockdown like in neighbouring Austria could become unavoidable. (BBG - Continue Reading)

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