GLOBAL NEWS-
Britain will set out its approach to tariffs on imported goods only if it has taken a decision to leave the European Union without a deal, business minister Greg Clark said on Wednesday.Britain currently has tariff-free access to EU markets and it benefits from EU trade deals with other countries. But its exports will automatically face tariffs if it leaves on March 29 without a transition deal.Businesses have been waiting to find out whether the government will then impose reciprocal tariffs on imports from the EU. Parliament is due to hold votes next week to determine whether it will accept an agreed divorce deal with the EU, leave with no deal or ask for a delay.“This would only arise if we leave without a deal on March 29.
Britain’s relationship with the United States is more important than ever and will prosper as Britain leaves the European Union, Washington’s ambassador to London Woody Johnson said on Wednesday.He added that the chances of a future trade deal between the two countries should not be damaged by false concerns over U.S. farming practices which he said had been largely driven by the European Union to create barriers to U.S. farm products.“I have confidence that whatever way you decide to go that the U.S. and our special relationship will continue and prosper, no matter what.Asked if that included in a no deal Brexit scenario, he replied: “In any situation I know that our two countries have to be together in this free world. There’s a lot of danger out there, so our relationship is more important now than ever whatever happens with Brexit.
India is likely to impose retaliatory tariffs on $10.6 billion worth of goods imported from the US, after the Trump administration decided to scrap duty benefits on $5.6 billion worth of exports from India by May, following the collapse of trade negotiations.In June 2018, India had decided to levy higher tariffs on products such as almonds, apples and phosphoric acid in retaliation to the US unilaterally raising customs duties on certain steel and aluminium products. However, India deferred implementation of the decision as talks were going on between the two sides for a trade package.The next deadline for the tariffs to kick in is 1 April.
Italy plans to sign a memorandum of understanding to become a part of China’s Belt and Road Initiative (BRI) by the end of March, a move which has drawn critical reaction from the United States, the Financial Times reported on Tuesday.“The negotiation is not over yet, but it is possible that it will be concluded in time for (Chinese President Xi Jinping’s) visit,” the newspaper reported quoting Michele Geraci, the undersecretary in the Italian economic development ministry.The United States said the project was unlikely to help Italy economically and could significantly damage the country’s international image.“We view BRI as a ‘made by China, for China’ initiative,” the report quoted Garrett Marquis, White House National Security Council spokesperson, as saying.
Asian stocks clung to narrow ranges on Wednesday as investors awaited fresh clues on the progress of U.S.-China trade negotiations, with a weaker Wall Street finish capping broader gains.Robust U.S. economic data supported the dollar, but its Australian counterpart slid after data showed the economy slowed more than expected in the fourth quarter.MSCI’s broadest index of Asia-Pacific shares outside Japan nudged up 0.05 percent, while Japan’s Nikkei declined 0.6 percent.The Shanghai Composite Index was up 0.3 percent as China’s state planner said the government will boost domestic consumption further this year. Beijing announced billions of dollar in tax cuts and infrastructure spending on Tuesday to reduce the risk of a sharper economic slowdown.
Australia’s economy slowed sharply in the second half of last year as consumers shut their wallets and housing construction pulled back, data showed on Wednesday, sending the local currency to a two-month trough.The gross domestic product (GDP) figures showed the economy expanded 0.2 percent in the fourth quarter, slower than the 0.3 percent increase economists had forecast in a Reuters poll. Third-quarter growth was unrevised at 0.3 percent.Annual GDP rose a below-trend 2.3 percent to A$1.9 trillion ($1.3 trillion), the slowest pace since mid-2017 and confounding expectations for a 2.5 percent increase.The dismal figures challenge the optimism of the country’s central bank, which expects growth to pick up to around 3 percent this year.
China sought to shore up its slowing economy through billions of dollars in planned tax cuts and infrastructure spending, with economic growth at its weakest in almost 30 years due to softer domestic demand and a trade war with the United States.The government is targeting economic growth of 6.0 to 6.5 percent in 2019, Premier Li Keqiang said at Tuesday’s opening of the annual meeting of China’s parliament, less than the 6.6 percent gross domestic product growth reported last year.Li said China’s fiscal policy would become “more forceful”, with planned cuts of nearly 2 trillion yuan ($298.3 billion) in taxes and fees for companies.Those tax cuts are more aggressive than the 1.3 trillion yuan delivered in 2018 and include reductions aimed at supporting the manufacturing, transport and construction sectors.
The U.S. Federal Reserve is considering imposing stricter rules on foreign bank branches to tighten what critics say is a loophole that has allowed overseas lenders to shield assets from the toughest U.S. bank rules.The changes being discussed could be a blow for lenders such as Deutsche Bank, Credit Suisse Group AG and UBS Group AG and which have for years held billions of dollars in assets, such as corporate loans, at their New York branches.The possible rule changes, that have not yet been decided, could also inflame tensions with European regulators who have long-complained that their lenders are held to higher standards in the United States than domestic rivals.
the U.S. and China are edging closer to resolving differences on currencies that have bogged down economic talks for nearly two decades. The only question is how meaningful the deal will be.With both nations inching towards a trade agreement that’s expected to include a provision for China to hold the yuan stable, U.S. President Donald Trump is shifting his gaze to the dollar’s strength.For China, a possible weaker dollar will lead to a stronger yuan, pressuring officials to halt its appreciation as the economy slows. That will risk triggering blunt criticism from Trump, who used his presidential election campaign to routinely accuse China of deliberately weakening its currency in order to boost exports."Trump wants the dollar to stay lower because of the impending election to counter the strengthening effects of his budget and Fed policy," said Douglas Paal, vice president for studies at the Carnegie Endowment for International Peace. "But if you were to ask him why, he might offer the excuse of China’s currency.
Gold prices steadied on Wednesday, after recovering from a more than five-week low in the previous session, lifted by a pause in global equities rally, while a firm dollar curbed further gains.Spot gold was steady at $1,287.25 per ounce, as of 0418 GMT, after slipping to $1,280.70 in the previous session, its lowest since Jan. 25.U.S. gold futures were up about 0.3 percent at $1,287.90 per ounce.
Benchmark international palm oil prices are set to climb in 2019 amid declining growth in global output and higher drawdowns in reserves as biodiesel consumption rises, a leading industry analyst said on Wednesday.Palm oil futures on the Bursa Malaysia Derivatives Exchange 1FCPOc3 slipped almost 8 percent in February, with the market this week trading around 2,160 ringgit a tonne.Palm oil prices are linked to the market due to the growing use of the commodity in making renewable fuels, Fry said. Expansion in biodiesel production is also helping to draw down inventories and support prices.Palm oil inventories in Indonesia and Malaysia, which together account for over 80 percent of global supply, rose to record highs in 2018. palm oil production growth is expected to slow in 2019, with output rising by 2.8 million tonnes to 70.9 million tonnes.
Oil prices fell nearly 1 percent on Wednesday as bullish output forecasts by two big U.S. producers and a build in U.S. crude stockpiles outweighed ongoing OPEC-led efforts to rein in crude production.International Brent futures LCOc1 were down 55 cents, or 0.8 percent, at $65.31 a barrel at 0209 GMT. U.S. West Texas Intermediate (WTI) crude futures were at $56.05 per barrel, down 51 cents, or 0.9 percent.U.S. crude inventories rose by 7.3 million barrels in the week ending March 1 to 451.5 million, compared with analysts’ expectations for an increase of 1.2 million barrels, API said. Crude stocks at the Cushing, Oklahoma, delivery hub rose by 1.1 million barrels. An increase in U.S. crude inventories is weighing on oil prices and in the long term, concerns over rising oil production in the Permian region is keeping a lid on prices.