Overseas Headlines- September 1, 2020

September 01, 2020

United States:
U.S. Opens Economic Front in Campaign to Expand Ties With Taiwan

“The U.S.’s decision to launch economic talks with Taiwan opened a new front in Taipei’s effort to push back against increased pressure from Beijing. The Economic and Commercial Dialogue announced by Washington and Taipei this week marks a breakthrough in Taiwanese President Tsai Ing-wen’s four-year quest for trade talks with the U.S. The Trump administration announced the framework days after Tsai dropped restrictions on the American pork products that Washington viewed as a barrier to broader negotiations.”



Euro-Area Inflation Turns Negative in Worrying Sign for ECB

“Consumer prices in the 19-nation euro area are falling for the first time in four years, highlighting that a recent rebound in economic activity hasn’t managed to offset the pandemic’s profound impact on demand. The inflation rate came in at -0.2%, missing economists’ median estimate for a reading of +0.2%. Core inflation hit a record low, in part dragged lower by discounting during summer sales.”




Asia’s Factories Continue Their Fragile Recovery in August

“Closely watched manufacturing gauges in Asia show a continued gradual improvement for the region’s manufacturing powerhouses like Japan, South Korea and Taiwan, even as the picture from the rest of the region is more mixed. Purchasing managers’ indexes for Japan and South Korea improved in August, to 47.2 and 48.5, according to IHS Markit figures, their strongest performance since February. Taiwan’s reading continued to stay above 50, the dividing line between contraction and expansion, recording 52.2 for the month for its best showing in two years.”


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