European Briefing - Friday 14.02
Headlines
  • China Coronavirus Deaths Slow, Cruise Ship Disembarks In Cambodia
  • Chinese Economy Clobbered By Coronavirus But Set To Recover Soon
  • Japan's Policymakers Brace For Q4 GDP Slump, Growing Virus Risks
  • Fed’s Williams: 2019 Rate Cuts Positioned Economy for Growth
  • Fed To Withdraw More Liquidity Than Expected Amid Funding Calm
  • US Senators Expect Trump To Withdraw Shelton Fed Nomination
  • US Charges Huawei With Racketeering, Adding Pressure On China
  • US Candidate Joe Biden Loses Status As Most Electable Democrat
  • UK PM Johnson Meeting With President Trump Postponed Until June
  • Yen Steadies On Virus Anxiety, Euro Hit By Weak Growth Outlook
  • Fixed-Income Fund Flows Rise As Investors Fear Coronavirus Impact
  • Thyssenkrupp Elevator Bidders On Tenterhooks As Decision Looms
Commentary
German GDP Set For Slight Fourth Quarter Growth

Germany is expected to announce minimal growth for the final quarter of last year, but a growing number of analysts say Europe’s largest economy contracted in the last three months of 2019, which could lead to a downward revision for the entire Eurozone.

 

 As part of last month’s announcement of Germany’s annual GDP expansion rates for 2019, a spokeswoman for the German statistics office Destatis said the country recorded a “small increase” in growth during the fourth quarter.

 

A poll of economists forecasts a quarterly German GDP rise of 0.1pct for the fourth quarter, which would match the rate in the previous three-month period. Price-adjusted GDP growth last year fell to 0.6pct, the lowest rate since 2013, Destatis said in January. (LiveSquawk – Continue Reading)

Chinese Economy Clobbered By Coronavirus But Set To Recover Soon

The coronavirus-hit Chinese economy will grow at its slowest rate since the financial crisis in the current quarter, according to a Reuters poll of economists who said the downturn will be short-lived if the outbreak is contained.

 

A Feb. 7-13 Reuters poll of 40 economists based in mainland China, Hong Kong, Singapore, as well as Europe and the United States, predicted China’s annual economic growth in the first quarter of 2020 to slump to 4.5% from 6.0% in the previous quarter.

 

That drop was expected to drag down the full-year growth rate in 2020 to 5.5% from 6.1% in 2019, its weakest since at least 1990 when comparable records began. (RTRS – Continue Reading)

UK Political Shock Opens The Door To Trump-Style Stimulus

Less than a month before a UK budget intended to set out Prime Minister Boris Johnson’s post-Brexit economic vision, the reset button has been hit.

 

The resignation of Sajid Javid, the man due to present what’s traditionally a closely watched piece of political theatre, has upended economic policy. It calls into question the government’s fiscal prudence -- a long-standing trait of Johnson’s Conservative Party -- and even when the blueprint will be unveiled.

 

In short, it’s a mess. Javid quit as chancellor of the exchequer because he was asked to fire his most senior advisers. His position is second only to that of prime minister and enjoys a degree of autonomy. The interference suggests Javid’s reputation as a fiscal hawk clashed with a desire in 10 Downing Street for looser purse strings. (BBG – Continue Reading)

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