Incoming ECB President Christine Lagarde talked about the challenges to the global economy in the CBS News “60 Minutes” program. She warned that US President Donald Trump has “many keys” that would “unlock the uncertainty of the risks”. The biggest key was in relation to “predictability and, and certainty of the terms of trade”. Also, she emphasized “market stability should not be the subject of a tweet here or a tweet there. It requires consideration, thinking, quiet and measured and rational decisions.”
Europe is facing increasing fears of recession, as led by slump in manufacturing. And the room for more monetary stimulus by ECB is very limited, given that rates are already negative. Lagarde said “there’s a limit to what central bankers can do. There’s a limit to how far and how deep you go into negative territory.” However, she added, “There’s a bottom to everything, but we’re not at that bottom at this point in time.” The interview was done in September though.
Chinese VP Liu said substantial progress made for a phased US-China trade deal
Chinese Vice Premier Lieu He said on Saturday that US and China have made “substantial progress in many fields” in trade negotiations earlier this month. And, that laid an “important foundation for the signing of a phased agreement”. He added that “China and the US can meet each other half way, based on equality and mutual respect, addressing each other’s core concerns, striving to create a good environment and achieving both sides’ common goals.”
It’s believed that teams from both sides are working towards the deadline of APEC meeting in Chile on November 16-17. Presidents from both countries could make use of the opportunity to side the phase one of the trade agreement. However, at this point, intellectual property protections, currencies and financial services are expected to be covered. But the depth of the agreement is uncertain. Some speculated that it could be “super light” for rebuilding trust first.