Euro caught in global trade crossfire
Monex Europe | The euro’s fortunes turned sour in 2019 despite the year starting with a positive outlook.
China
In Depth: Whither the Chinese Economy in 2020?
Yu Hairong, Wu Hongyuran, Huo Kan, Cheng Siwei and Han Wei (Caixin) | Where is the Chinese economy heading and how will policymakers react? As the new year approaches, debate over the outlook of the world’s second-largest economy is heating up, and all eyes are searching for clues to the next policy steps.
YearEnd Tailwind: DeEscalating Policy Risks
Libby Cantrill (Pimco) | We’ve seen a significant reduction or even outright elimination of many of the downside risks that have created clouds of uncertainty both in Washington and in financial markets over the past several months. The most substantial clarifying event was the announcement of the Phase 1 deal between China and the U.S.
The dragon’s head roars in Athens
Jens Bastian (MacroPolis) | It was a visit worthy of a plethora of superlatives. The arrival of China’s President Xi Jinping in Athens (November 10-12) was termed a “vote of confidence” for Greece.
How mega infrastructure projects in Africa, Asia and Latin America are reshaping development
S. Schindler and J. M. Kanai (The Conversation) | Huge investments in infrastructure are redefining global development, from China’s Belt and Road Initiative to infrastructure development plans from the African Development Bank and the Initiative for the Integration of the Regional Infrastructure of South America.
Trump is flouting global trade rules with China yet embracing them with the EU – here’s why it matters
Charles Hankla (The Conversation) | Just as America’s trade war with China may be winding down, its troubles with Europe seem to be growing.
IEA: rapid development of solar energy in EU will compensate decline in China
The International Energy Agency (IEA) has fixed the global growth of solar and wind power and other clean energies at double digits for this year. 200 GW of new clean energy capacity is expected to be installed by the end of 2019. The largest part of the new capacity will come from solar energy with 115 GW, despite a small contraction in the China market.
Is China’s Belt and Road Initiative Strategic Genius, Arrogant Overreach or Something Else?
Atul Singh via Fair Observer | The Belt and Road Initiative is China’s bold and risky response to internal tensions and external pressure, but it is not backed by an inspiring idea.
Fears of a slowdown more pronounced
Investment Desk, Bank Degroof Petercam │ Fears of a slowdown are more pronounced. We are seeing a slight reduction in trade tensions since President Trump announced a partial delay in the imposition of new tariffs on Chinese products. The tariffs on approximately half of the 300,000 goods subject to the measures will be introduced from 15 December instead of September.
China: interest rate reform to improve transmission
Magdalene Teo, Fixed Income Research Asia, Eric Mak, Equity Research Analyst Asia, Julius Baer │China has opted for interest rate reform (to be more market-oriented) instead of announcing a benchmark rate cut, so liquidity flow is more targeted to the segments that need it.