Overseas Headlines- December 11, 2019

Date: December 11, 2019

United States:

Fed Dots May Yield Clue on Split Over Pause: Decision Day Guide

“While Jerome Powell is expected to reinforce the signal that policy is on hold at the central bank’s meeting on Wednesday, some of his colleagues may be looking ahead to when they should hike again. The Federal Reserve chairman looks all but certain to keep rates unchanged after reductions at the previous three gatherings as insurance against slowing global growth and trade disputes. The Federal Open Market Committee will release a statement and updated quarterly forecasts at 2 p.m. in Washington with Powell holding a press conference 30 minutes later. Powell is likely to repeat his recent comments that both monetary policy and the economy are “in a good place” and that it would take a “material reassessment” of the outlook to prompt a chance in rates. The FOMC’s rate forecast through 2022 will be closely watched. While economists surveyed by Bloomberg see them staying on hold for the next two years, a sizable number of Fed officials may prefer to resume raising rates as early as 2020.”




France Raises Pension Age to 64 in Defiance of Protests

French workers will begin contributing to a new public-pension system from 2025 under President Emmanuel Macron’s plan to update the country’s complex and generous existing arrangements. After days of strikes disrupting life across the country, Prime Minister Edouard Philippe promised minimum full benefits of 1,000 euros ($1,100) a month and said that the age for receiving a full pension will rise to 64 from 62 in 2027 — later than some commentators had predicted. He said the legislation will go to lawmakers in February and he aims to have the bill passed by the end of next year. “I hear the concerns expressed over recent days. I understand them,” Philippe said as he set out the plan at an event in Paris. “We may disagree on some points, but the ambition is for a universal system with social justice. There is no hidden agenda.” ”




China Sees U.S. Delaying Dec. 15 Tariff Hike as Talks Drag

“Chinese officials expect President Donald Trump to delay a threatened tariff increase set for Sunday, giving more time to negotiate an interim trade deal that both sides continue to insist is close to fruition despite a series of missed deadlines, according to people familiar with the discussions.The two sides, staying in almost daily contact, have also come closer to an agreement on scaling back the tariffs already in place. But rather than removing or rolling back existing levies, the focus has been on reducing the rate of the tariffs already in effect, according to officials and other people familiar with the talks.”



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