European Briefing - Tuesday 14.01
Headlines
  • China To Buy More US Energy, Manufactured Goods In Trade Deal
  • US Drops China As Currency Manipulator Ahead Of Trade Deal
  • USTR Lighthizer: Nearly Done With China Trade Deal Translation
  • China’s Trade With US Fell In 2019, Global Surplus Widened
  • Fed’s Bostic: Economy Doing Fine, Should Stand Pat On Rates
  • US Budget Deficit Widens 11.8% In First Quarter Of Fiscal Year
  • New Democratic Iowa Poll Shows Tight Race, Biden Jumps Ahead
  • Europe Urged To Use Industrial Data Trove To Steal March On Rivals
  • Bank Of England Urged To Find New Weapons To Fight Recession
  • UK PM Johnson’s Brexit Fight Looms On EU’s Fishing Access Demands
  • US Presses UK PM Johnson With New Dossier On Huawei Security Risks
  • S&P 500, Nasdaq Rise To Record Highs As Geopolitical Risks Abate
Commentary
China To Buy More US Energy, Manufactured Goods In Trade Deal

The trade deal to be signed this week will include pledges by China to buy $200 billion of US goods over a two-year period in four industries, a Trump administration official and two people briefed on the matter said.

 

The target for manufactured goods purchases will be the largest, worth around $75 billion. China will also promise to buy $50 billion worth of energy, $40 billion in agriculture and $35 billion to $40 billion in services, the three people said.

 

Analysts have speculated for weeks about what kinds of purchases China could make in these sectors. “Energy products are specifically mentioned in the section on ‘Expanding Trade’ in the fact sheet produced by the USTR on Dec. 13, 2019,” said Moody’s Analytics chief Asia-Pacific economist Steve Cochrane. (Politico – Continue Reading)

Trump Accused Of Playing Politics With Treasury Report On China

The US’s abrupt declaration on Monday that China is no longer a currency cheat -- two days before the signing of a trade deal with Beijing -- shows how President Donald Trump has turned a routine, technical report on foreign exchange into a political cudgel.

 

“It’s absolutely being used as a bargaining tool,” said John Doyle, a foreign currency strategist at Tempus Inc. in Washington. “We will look at that report now and wonder: Who are they going to flip on next if its politically convenient to get a deal done?”

 

Treasury’s semi-annual report has long offered markets crucial signals about U.S. policy toward countries it deems to be manipulating their currencies. Using the report for other means -- such as leverage to finalise a trade deal -- risks undermining the weight of the designation if markets start to take it less seriously. (BBG – Continue Reading)

Warren, Sanders Clash Ahead Of Democratic Debate

Sen. Elizabeth Warren said that Sen. Bernie Sanders, one of her rivals for the Democratic presidential nomination, told her during a private 2018 meeting that a woman couldn’t win the US presidency—a statement Mr. Sanders denies.

 

Ms. Warren, in a statement distributed by her campaign Monday evening, said that she and Mr. Sanders met for more than two hours just over a year ago when each senator was laying the groundwork for a White House bid.

 

“Among the topics that came up was what would happen if Democrats nominated a female candidate. I thought a woman could win; he disagreed,” Ms. Warren said. “I have no interest in discussing this private meeting any further because Bernie and I have far more in common than our differences on punditry.” (WSJ – Continue Reading)

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