Janet Mui: weekly economic update 8 November 19
US-China trade development
- China and the US have agreed to roll back existing tariffs as they work toward a deal, according to reports on Thursday. Markets rallied in response.
- If this step results in the release of pent-up investment that has been hold back by trade uncertainty, we think the global economy will stabilise instead of further slowing down.
German industrial production
- German industrial production continued to contract in September on a year-on-year basis.
- There may be some evidence that the worst is over: the latest German factory orders are starting to improve.
- Positive developments in USChina trade would help the German economy stabilise.
Bank of England meeting
- Policy remained unchanged at the Bank's November meeting, as an upcoming general election and Brexit extension added more uncertainty for policymakers.
- Two members of the Monetary Policy Committee unexpectedly voted to cut rates by 25 basis points, citing Brexit and global risk as the rationale.
- If global growth fails to stabilise this could prompt policy easing, thre Bank indicated.
- What can the Covid-19 crisis teach us about tackling climate change?
- Covid-19 poses temporary setback to the energy transition
- Investors ask: what will happen to the price of gold?
- Why global cities can still thrive despite Covid-19’s impact
- Inflation post Covid-19: to be or not to be?
- Clean technologies and climate policy: the global financial crisis and Covid-19
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