Overseas Headlines- September 3, 2020

September 3, 2020

United States:
U.S. Trade Deficit Swelled to Biggest Since 2008 in July

“The U.S. trade deficit swelled to the widest in 12 years in July, with the surplus on services plunging to the lowest since 2012, pointing to a bumpy economic recovery ahead. The overall gap of goods and services expanded to $63.6 billion in July from a revised $53.5 billion in June, according to Commerce Department data released Thursday. The median estimate of economists surveyed by Bloomberg had called for a widening to $58 billion. The positive balance on services declined for the first time in three months, dropping to $17.4 billion.”



Europe Pledges Push to Cut Reliance on Imported Raw Materials

“The European Union stepped up a push to become less dependent on imported raw materials such as rare earths and lithium, saying supply-chain disruptions caused by the coronavirus outbreak bolster the need for more self-sufficiency. The European Commission vowed to create a raw-materials alliance by the end of the year in a bid to “increase EU resilience in the rare earth and magnet value chains” because of their importance to industries ranging from renewable energy to space.”



Decoupling With U.S. Would Cut China’s Growth to 3.5%, Says Study

“The worsening conflict between China and the U.S. has damaged bilateral trade, but a complete decoupling between the two largest global economies would be even more damaging to China’s long-term growth prospects, according to Bloomberg Economics. The country’s potential growth rate could fall to about 3.5% in 2030 if it decouples with the U.S., Bloomberg Economists Tom Orlik and Bjorn van Roye wrote in a note. That’s down from the current forecast of 4.5%, which assumes relations remain broadly unchanged.”

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