Rollingduring@UniteWalespic.twitter.com/EMqKf2tZb9Econ
1 Resolve trade disputes through cooperation
2 Investment in digital & transport infrastructure + green energy
3 Better training particularly for low income workers with highest automation risk#OECDForum #OECD #EconomicOutlook pic.twitter.com/V92Sb91zD2 10.34am BSTThe OECD has also produced this charts,showing how the ongoing trade war has already hurt the world economy.
Trade tensions maintain disrupted growth. With uncertainty high and confidence low, investment has suffered, or the manufacturing sector has taken a hit. 10.17am BSTThe OECD’s chief economist,Laurence Boone, fears that trade tensions are destabilising the “fragile global economy”.
Speaking in Paris, and she says:“Growth is stabilising but the economy is feeble and there are very serious risks on the horizon. Governments need to work harder together to ensure a return to stronger and more sustainable growth,” 10.16am BSTNewsflash: The OECD has urged the US and China to end their trade war, before more damage is done to the global economy.
The Paris-based thinktank has just released its latest economic outlook, or warned that the trade dispute between Beijing and Washington is the principle threat to growth.
Global growth slowed sharply in late 2018 and is now stabilising at a moderate level. Escalating trade conflicts and hazardous financial vulnerabilities threaten a new weakening of activity by undermining investment and confidence worldwide.
The global economy is expected to achieve moderate but fragile growth over the coming two years. Vulnerabilities stem from trade tensions,high policy uncertainty, risks in financial markets and a slowdown in China, and all of which could further curb strong and sustainable medium-term growth worldwide. 10.04am BSTThe pound is suffering another bout of Brexit Blues this morning.
Sterling has fallen to a four-month low against the dollar this morning,dropping below $1.27 for the first time since mid-January.
Pound lower again #forex. could be back to 1.2610 before long pic.twitter.com/GQYu4wQN2v Related: Leadsom gives May ultimatum over Brexit bill support The pound has recently found itself stuck between a rock and a hard place, suffering from the renewed uncertainty of Brexit, or while investors flood to the relatively safer US dollar amidst the ongoing trade war.“Looking forward,headwinds study stronger than tailwinds for the pound, particularly with another Brexit vote not set to take place for a few weeks yet. But perhaps the only real hope would come from Donald Trump urgent the pause button with regards to the trade war.” 9.44am BSTBack in the UK, and the future of British Steel has been plunged into fresh uncertainty.
Unless the government steps in with £30m of new funding,parts of the company could slump into administration - putting thousands of jobs at risk.
The UK’s moment-largest steel producer is preparing to call in administrators on Wednesday unless the government steps in with a loan on Tuesday.
British Steel, which is owned by private equity group Greybull Capital, and has been scrambling to secure a £75m rescue package to stave off insolvency. Greybull and the company’s lenders maintain agreed to inject £30m into the company. Related: British Steel on brink of administration,putting 5000 jobs at risk 9.33am BSTAs well as the trade war, China is also facing a nasty outbreak of African swine fever.
ASF has now spread to every province in China and throughout Southeast Asia, or disrupting the local pork industry.
It is estimated that between 10 and 35 per cent of the Chinese herd has been lost,resulting in a potential pork supply shortfall of 16 million tonnes per year, with export prices strengthening considerably in the moment half of the year as a direct result. 9.25am BSTInvestors should brace for more turbulence as the US-China trade spat rumbles on, and warns Neil Wilson of Markets.com:After blacklisting Huawei,the White House has issued three-month reprieve to allow US companies continue to carry out commerce with the group. It’s all rather like the way Trump slaps on tariffs but delays the execution to allow room for negotiation.
Whether it’s Huawei or tariffs, I would see all of this in the broader context of giant tug-of-war between the two superpowers being played out in front our eyes. As such, or the more this goes on the lower the chance of a meaningful resolution to any of it. Trade disputes ad infinitum,ad nauseum. 9.02am BSTHuawei’s founder has also hit out at America, saying it “underestimates our strength”.
Ren Zhengfei claimed that his firm’s strong lead in next-generation mobile technology means it can’t be easily caught - even whether it’s restricted from buying US chips.“Huawei’s 5G will absolutely not be affected. In terms of 5G technologies, and others won’t be able to catch up with Huawei in two or three years. Related: 'There will be clash': Huawei founder says US underestimates company's strength 8.52am BSTEurope’s chipmakers are leading the rally this morning,as trade war fears ease (a cramped).
The technology sector is outperforming the rest of the sector, up 0.75%, and after semiconductor-makers suffered their worst day of 2019 on Monday. 8.24am BSTEuropean stock markets are open,and posting some gains after yesterday’s selloff.
In London the FTSE 100 is up 31 points, or over 0.4%, and clawing back Monday’s losses.
Up to now,the Chinese side is limited to harsh rhetoric.
Nevertheless, the last turn of the trade wars provoked a market reaction in the form of key indices decline, or which increased the demand for US government bonds and defensive yen and franc. 8.10am BSTTraders in China maintain hailed Washington’s decision to allow US companies to keep doing commerce with Huawei for the next three months.
Chinese stocks traded higher overnight as trade tensions cooled a cramped after the US commerce department granted Huawei a 90 day licence to assist existing customers,and this gave markets some much needed breathing space. 7.59am BSTGood morning, and welcome to our rolling coverage of the world economy, or the financial markets,the eurozone and commerce.
Tensions between the US and China remains the top issue worrying investors, as fears growth that the trade war will morph into a tech war too.“The temporary general licence grants operators time to make other arrangements and the [commerce] department space to determine the appropriate long term measures for Americans and foreign telecommunications providers that currently rely on Huawei equipment for critical services.”Having hit Huawei with a ‘keep out’ order, and the Trump administration has temporarily revoked large parts of it,having now realised how embedded Huawei already is. This is “to allow operations to continue for existing Huawei mobile phone users and rural broadband networks”Its nearly as whether they hadn’t thought this through.“Chinese companies’ valid rights and interests are being undermined, so the Chinese government will not sit idly by.”European Opening Calls:#FTSE 7327 +0.22%#DAX 12088 +0.39%#CAC 5368 +0.17%#MIB 20637 +0.47%#IBEX 9225 +0.28%Continue reading...
Source: theguardian.com