Janet Mui: weekly economic update 5 April
Global activity data from around the world
Markets were cheered by Chinese data indicating a pick-up in economic activity. However, data from Europe was disappointing, with German new orders at the lowest level since the financial crisis. We expect stronger Eurozone activity in the second half of the year.
Pressure on UK and Eurozone to co-operate on Brexit
The UK’s House of Commons narrowly passed a bill ruling out a no-deal Brexit and requesting a long extension to the process. With Eurozone activity weak, and signs that the UK economy is slowing, there is economic pressure on both sides to reach agreement.
Progress in US-China trade talks
President Trump and China’s vice premier met this week. Under a widely-expected trade deal, China will agree to buy more products from the US and will allow US companies full ownership of their Chinese subsidiaries.