ASIA:
The IMF has released a report stressing that the US-China trade war be resolved quickly as it is putting pressure on global growth. “That is not only good for China and the U.S., but also for the international community as a whole,” Jin Zhongxia, executive director for the People’s Republic of China, says in a statement.
As the 10th week of protests against China took place. Thousands of Hong Kong residents continue to protest against mainland China. This time, residents have taken to the airport as many demonstrators gather and take place and occupy parts of the international airport. The protests are expected to take 3 days. Mrs. Lam stated that the protests are causing a lot of issues for the country — a 30% decline in tourists since the protests began. The protestors are handing out leaflets with 5 demands by the protestors.
The UN has stated that North Korea have stolen up to 2 billion USD from financial institutions and cryptocurrency exchanges to fund their weapon purchases.
India has formed a military lockdown parts of Kashmir, a blackout and a curfew to halt expected demonstrations against recent decisions by India. There has also been large demonstrations in Pakistan against India’s actions.
Malaysia charges 17 current and former Goldman Sachs directors due to the 1MDB scandal.
The major Asian stock markets had a mixed day today:
The major Asian currency markets had a mixed day today:
Precious Metals:
Some economic news from last night:
Japan:
China:
New Zealand:
Some economic news from today:
Japan:
India:
EUROPE/EMEA:
The UK economy shrunk by 0.2% for the month of April and June, the worst monthly performance since 2012, the office of National Statistics revealed. Of course, the uncertainties surrounding Brexit was cited as the culprit.
The Balkans expansion is on hold as Macedonian and Albanian discussions to join the EU are not moving ahead with speed.
Matteo Salvini leader of far-right Italian party has asked for a snap election as he states differences with the current coalition leader cannot be mended. He mentioned that the country is “paralyzed” for months and he is unable to give the country a voice. Latest polls show that he could have a chance to be elected without a coalition which will make it the first far right-wing party elected in the EU. Italian MPs will meet on Monday to set a date for no confidence vote. The current PM held a press conference late last night saying it is not up to Salvini whether a snap election will be held.
In Moscow more protests are occurring regarding President Vladimir Putin’s 28th year in power. The protesters are highlighting the “Russian fake democracy”, stating the regime is really authoritarian. Although the protests are relatively small, in the low thousands with a city of approximately 20 million people.
Greek and Turkish senior officials are due to meet to discuss peace talks regarding the island of Cyprus which is divided between the two from north to south.
The major Europe stock markets had a negative day today:
The major Europe currency markets had a mixed day today:
Some economic news from Europe:
Swiss:
Germany:
Norway:
France:
Italy:
UK:
U.S./AMERICAS:
President Trump stated that the U.S. is officially ceasing all business with Chinese operated Huawei. “That doesn’t mean we won’t agree to something if and when we made a trade deal,” Trump noted. Huawei was placed on a black list weeks ago but was recently permitted to conduct business with pre-approved parties in the U.S. It appears that the U.S. is leveraging conducting business with Huawei in the same manner that China is holding out on purchasing U.S. agriculture. “We are talking to China; we are not ready to make a deal, but we’ll see what happens…China wants to do something, but I’m not doing anything yet,” the U.S. president further stated.
Mexico is reaping the benefits of the U.S.-China trade war as new U.S. Census Bureau data shows the country is now the U.S.’s largest trading partner. During the first six months of 2019, $309 billion in goods were exchanged between the two nations, accounting for over 15% of U.S. trade. Canada has the second strongest trading partnership with the U.S., trading slightly below Mexico at $306 billion during the first half of the year. Although no longer in the top spot, U.S.-China financial ties remain strong after around $271 billion in imports and exports were passed between the two nations during Q1 and Q2. Japan holds the fourth slot for U.S. trading partnership ($109.7 billion), followed by Germany ($92.6 billion), South Korea ($67.5 billion), UK ($65.1 billion), France ($49.1 billion), India ($47.8 billion), and Taiwan ($41.4 billion).
Good news for Canadians with Chase Bank credit cards – the bank announced that they will “forgive” all outstanding debt. Chase Bank, owned by NY-based JP Morgan Chase, closed all Canadian credit card accounts last year but required debtors to continue paying their outstanding balances. Now, the bank has decided to cancel all outstanding balances much to the surprise of account holders.
U.S. Market Closings:
Canada Market Closings:
Brazil Market Closing:
ENERGY:
Wti and crude had an up day today despite a surprising surplus to oil reserves in the US earlier this week and negative news regarding global growth and trade. However, positive news of growth from China and tensions in the Middle East are forcing the price up.
The oil markets had a green day today:
The above data was collected around 13:15 EST on Friday.
BONDS:
Japan -0.22%(-3bp), US 2’s 1.61% (-1bps), US 10’s 1.70%(-1bps), US 30’s 2.21%(-2bps), Bunds -0.58% (-2bp), France -0.27% (+1bp), Italy 1.80% (+26bp), Turkey 14.64% (+34bp), Greece 2.14% (+9bp), Portugal 0.28% (+3bp), Spain 0.26% (+2bp) and UK Gilts 0.49% (-3bp).
Italian 12-Month BOT Auction increased from -0.061% to 0.107%
