March 05, 2020
United States:
Le Maire Warns Against EU-U.S. Trade Escalation Given Virus Hit
“French Finance Minister Bruno Le Maire said it’s even more important for Europe and the U.S. to solve its trade dispute given the threat to the global economy from the coronavirus. He told a French senate hearing that an escalation of tariffs and sanctions would be hugely damaging. There’s already widespread concern about the epidemic, which has shut businesses and factories, prompted huge downgrades to the global economic outlook and pushed the Federal Reserve into an emergency interest rate cut.”
Europe:
Putin and Erdogan Are Feuding and There’s Big Money at Stake
“A fresh standoff between Vladimir Putin and Recep Tayyip Erdogan is testing the fragile alliance that has allowed Russia and Turkey to work together in the Middle East. But there’s another major reason why things may not get too far out of hand: the countries have deeply entrenched economic ties. The potential for economic upheaval was tested in 2016 when Moscow imposed sweeping restrictions on trade following the downing of a Russian warplane in Syria by Turkish fighter jets. The food feud led to job losses and a widening trade deficit in Turkey, while pushing up inflation in Russia. The last of the curbs were dropped by Putin in 2018 as relations improved.”
Asia:
China Traders Are Making Easy Money While Rest of World Panics
“Global markets in turmoil. Central banks rushing to arrest panic. But in China, the country most affected by the virus outbreak, it’s boom time for traders. A gauge of stocks in Shanghai and Shenzhen has jumped 14% in just over a month to close at a two-year high on Thursday. One exchange-traded fund focused on 5G amassed $2 billion in days as investors clamored to chase a rally in tech shares. Seeking to maximize returns, punters have driven stock leverage and daily turnover past 1 trillion yuan ($142 billion), both near four-year highs. Government bonds have surged too, with the 10-year yield approaching its lowest level since 2002.”
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