China today told Philippines President Duterte that the disputed area of the South China Sea was not up for negotiations as President Xi and Duterte met in Beijing. However, China was willing to work together to effectively manage the issue. With Duterte in his final term as presidency, critics back in his native country are saying he is just going through the motions and is not necessarily pushing for a solution.
US President Donald Trump has attacked US General Motors, asking why they have such large operation in China. It would be better to bring the operations back to the US.
In Hong Kong, National Party leader Andy Chan Ho-tin was arrested at the airport as he was about to board a flight to Japan. In addition, pro-democracy activist Joshua Wong was also arrested – he started the 2014 protests and was allegedly kidnapped from the subway, as it seems China is starting to come down on the protestors. There were also other reports which suggested that other protest leaders were attacked by “thugs” by being violently hit by baseball bats and metal poles. The EU weighed in on the situation describing the events as extremely worrying, and has warned against any further escalation.
India’s government released statistics today showing that economic growth has hit a six-year low, growing only 5% in the three months to June. This is a 3% drop from the same period of last year. Indian auto manufacturing industry has been one area of concern, with a huge drop in demand this year. The reserve bank of India has dropped the interest rates four times this year, bringing the interest rates to the lowest level in 9 years.
The major Asian stock markets had a mixed day today:
The major Asian currency markets had a mixed day today:
Some economic news from last night:
Some economic news from today:
UK PM Boris Johnson defended his actions of dismissing the parliament as he believes he will have a better chance to cut a better deal with the EU. Three courts in the UK, will consider the demands to halt Boris Johnsons dismissal of more than a month. Today, according to Reuters, an EU spokeswoman told them that their “doors remain open” with regards to finding a deal with the UK. Further adding, “Our position remains that we will need to first see concrete proposals from the UK government … whether digital or on paper.”
PM Boris Johnson later in the day told media “We are in the last stages now of negotiating with our friends about a way to get it done. If we can’t succeed in that negotiation we must come out anyway.” There is a slightly optimistic tone that a deal can be reached.
The EU has told potential joining country Serbia that it must dissolve any free trade deals it has with Russia if it wants to join the European Union. Finnish PM has told media today that there have been progressive talks for Macedonia and Albania to join the EU.
Israeli Prime Minister Netanyahu has ordered Macron of France not to open talks with Iran. He said Iran is increasing its regional aggression and now is “precisely not the time.”
The major Europe stock markets had a green day today:
The major Europe currency markets had a mixed day today:
Some economic news from Europe today:
Yet again, trade talks are allegedly resuming between the US and China. On Thursday, President Trump stated talks had resumed “at a different level,” but warned that the public should reserve their judgements until a deal is finalized. Gao Feng, a spokesman for China’s Ministry of Commerce, stated that China’s new aim is to avoid the additional tariffs on $550 billion worth of Chinese goods. Gao stated that the additional tariffs will escalate the trade war, noting that China has “plenty of means for countermeasures.” The US and China are scheduled to have a direct in person meeting at the end of September.
President Trump and President Xi have a mutual enemy – The Wall Street Journal. Reporter Joshua Wong co-wrote an article last month which alleges that President Xi’s cousin was involved in a money laundering scheme in Australia. Wong is now banned from reporting in China, and
“We don’t have a tariff problem (we are reigning in bad and/or unfair players), we have a Fed problem,” President Trump tweeted this Friday. The historically high dollar, according to the president, is harming US businesses exporting overseas. Noting the euro’s decline against the dollar, the president stated that the EU has an unfair manufacturing advantage against the US. “Badly run and weak companies,” according to Trump, are blaming the current administration’s tariffs instead of the Federal Reserve’s interest rate policy. The FOMC is set to reevaluate rates and monetary policies in the coming weeks.
US consumer sentiment fell beneath the initial reading for August, according to the University of Michigan’s analysis. Consumer sentiment reached 89.8 in August, which fell beneath the expected 92.1 reading and declined against July’s index score of 98.4.
Governor Ron DeSantis has declared a state of emergency for the state of Florida in advance of hurricane Dorian’s arrival. President Trump canceled his upcoming visit to Poland to remain in the states. The National Guard has sent 2,500 troops to Florida with another 1,500 on standby.
US Market Closings:
Canadian Market Closings:
Brazil Market Closing:
More economic gloom as India’s official numbers showed a drop in economic growth, this has been a common pattern across the globe of late and the crude oil price dropped almost 3% at time of writing. It was meant to be a good finish for the week for oil. However, today’s decline pushed crude back down as it continues its sideways market since the beginning of this month.
The oil markets had a negative day today:
The above data was collected around 12:40 pm EST on Friday.
Japan -0.27%(+2bp), US 2’s 1.52% (-1bps), US 10’s 1.51%(-0bps), US 30’s 1.98%(-0bps), Bunds -0.72% (-3bp), France -0.42% (-0bp), Italy 1.00% (+1bp), Turkey 15.69% (-15bp), Greece 1.62% (+6bp), Portugal 0.13% (-0bp), Spain 0.13% (+1bp) and UK Gilts 0.48% (+4bp).