Date: June 26, 2019
U.S. Set to Delay More China Tariffs Ahead of Trump-Xi Meeting
“The U.S. is willing to suspend the next round of tariffs on an additional $300 billion of Chinese imports while Beijing and Washington prepare to resume trade negotiations, people familiar with the plans said. The decision, which is still under consideration, may be announced after a meeting between Presidents Donald Trump and Xi Jinping set for Saturday at a Group of 20 summit in Japan. A broad outline of the Trump-Xi agenda was discussed in a phone call Monday between U.S. Trade Representative Robert Lighthizer, and his counterpart in Beijing, Vice Premier Liu He. In an interview with CNBC on Wednesday, Treasury Secretary Steven Mnuchin expressed optimism that a deal could be reached by year end, saying the two sides “were about 90% of the way there and I think there’s a path to complete this,” with a need still for “the right efforts.” U.S. stock futures jumped on his remarks.”
June Hasn’t Looked This Good for Germany’s DAX Index in 16 Years
“The stock index that U.S. President Donald Trump singled out in his criticism of European Central Bank policy this month is poised for its biggest June rally in 16 years. Boosted by optimism about looser monetary policy in the euro area and a rebound in carmakers, Germany’s benchmark DAX Index has climbed 5% this month, in what has historically been a weak period for the country’s equities. A close at this level will mark its best June since 2003. While the DAX declined in the past three sessions along with the broader market, it rebounded on Wednesday after the U.S. was said to be willing to suspend the next round of tariffs on an additional $300 billion of Chinese imports. The index climbed 0.7% as of 12:21 p.m. in Frankfurt, among the best performers in western Europe. The gauge posted its biggest advance in five months on June 18 after ECB President Mario Draghi said more stimulus would be needed if the euro-area economic outlook doesn’t improve, prompting Trump to note the rally in a tweet, calling it “very unfair” to the U.S. ”
Singapore Is Heading for Recession Next Quarter, Maybank Says
“Singapore’s economy will probably experience a “shallow technical recession” in the third quarter as the global trade outlook worsens, according to Maybank Kim Eng Research. As a result, Maybank has downgraded its projection for Singapore’s economic growth for this year to 1.3% from 1.6%, Singapore-based economists Chua Hak Bin and Lee Ju Ye said in a note. That’s below the government’s forecast range of 1.5% to 2.5%. A report on Wednesday showed manufacturing contracted 2.4% in May from a year ago, worse than expected. A recession is defined as two consecutive quarters of negative quarter-on-quarter growth, and if that happens, it will increase the chance of the central bank easing monetary policy in October, the economists said.”
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