European Briefing - Tuesday 30.06
Headlines
  • Fed’s Powell Warns Of Great Uncertainty, Urgency To Curb Virus
  • US Halts High-Tech Exports To Hong Kong On Security Concerns
  • China Factory Outlook Brighter In June As Recovery Continues
  • China Unanimously Approves HK Security Law, Risking US Anger
  • White House’s Kudlow: US Still Poised For 'V-Shaped Recovery'
  • Trump Received Written Briefing On Possible Russian Bounties
  • LA County Issues Warning Amid Alarming Virus Cases Increases
  • Arizona, NJ Become Latest States To Roll Back Reopening Plans
  • Europe Set To Extend Travel Ban For US Residents On Tuesday
  • UK PM Promises ‘New Deal’ To Rebuild UK Economy After Virus
  • UK Businesses Turn Less Negative For First Time Since January
  • Leicester Forced Into Local Lockdown To Combat Virus Surge
Commentary
US Halts High-Tech Exports To Hong Kong Over Security Concerns

The Trump administration placed new restrictions on US exports of defense equipment and certain high-technology products to Hong Kong on Monday, in response to a new Chinese law aimed at tightening Beijing’s control over the territory.

 

The administration determined in late May that Hong Kong no longer had significant autonomy under Chinese rule, and promised to begin stripping away Hong Kong’s privileged status with the United States if Beijing continued to crack down on civil liberties in Hong Kong.

 

Chinese lawmakers are poised to approve a national security law as soon as this week that could drastically curb protests and other criticisms of the Chinese government, infringing on an arrangement that has made Hong Kong, which China ceded to Britain in 1842 and which ceased being a British colony in 1997, autonomous in many respects. (NYT - Continue Reading)

China Approves Hong Kong Security Law, Risking US Anger

China’s top legislative body approved a landmark national security law for Hong Kong, a sweeping attempt to quell dissent that risks US retaliation and the city’s appeal as a financial hub.

 

The National People’s Congress Standing Committee voted unanimously to approve the law on the former British colony when it wrapped up a three-day meeting Tuesday in Beijing, multiple Hong Kong media organizations reported, citing unidentified people.  The official Xinhua News Agency will publish details of the law this afternoon, marking the first time the law will be fully disclosed to the public, the South China Morning Post reported, citing a source familiar with the situation.

 

Speaking shortly after the reports, Hong Kong Chief Executive Carrie Lam said she couldn’t confirm whether the law had been approved. She acknowledged that residents in the city had many concerns about the measure before pivoting to discuss job-support subsidies. (BBG - Continue Reading)

EZ Headline Inflation Set To Show Slight Gain In June

Annual consumer price growth in the Eurozone is expected to have moved slightly higher in June on increased costs for energy, but inflation is projected to remain well below the European Central Bank’s target of near but below 2pct as countries in the single currency area attempt to restart their economies after from Covid-19 lockdowns.

 

Headline June inflation in the euro area is forecast to show an increase this month to an annual rate of 0.2pct from the 0.1pct reading in May on energy price growth. Futures prices for West Texas Intermediate (WTI) crude turned negative in the latter part of April but were more than $7 higher on Monday than at the end of May.

 

The Eurozone’s core rate inflation rate is expected to move lower with a drop to 0.8pct from 0.9pct last month, according to economists. “This headline ought to provide the first clear evidence of core inflation in a post-Covid-19 world; we expect a 0.2 percentage point decline, to 0.7pct,” said Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics. (LiveSquawk - Continue Reading)

Files & Links
DATA
APAC GOVERNMENT/CENTRAL BANKS
EUROPEAN/AMERICAS GOVERNMENT/CENTRAL BANKS
FX
FIXED INCOME
COMMODITIES/ENERGY
APAC EQUITIES
EUROPEAN/US EQUITIES