Europe Moves to the Center Ring

Jan 12 18:01 2019 Print This Article

In recent weeks, the macro story focused on the shifting outlook for Fed policy and the Sino-American trade relationship.  There is unlikely to be further progress on either issue in the week ahead.  The Fed won't raise interest rates until toward the middle of the year at the earliest.  The government shutdown will limit new readings on the US economy.  US and Chinese officials just met.  Mid-level Chinese officials can easily sign-on to buy more US foodstuff and energy because they previously agreed to do this.  The more contentious issues will take further negotiations.  The next set of talks will take place at the end of this month when Chinese Vice Premier Liu He travels to Washington.

The focus in the in the week ahead shifts to Europe, and the outlook is not good. The protracted and painful UK exit from the EU is approaching a climax of sorts as the House of Commons will vote on the Withdrawal Bill.  Worrisome economic data from the euro will likely include softer inflation and recession-like drop in industrial output.

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About Article Author

Marc to Market

Marc Chandler has been covering the global capital markets in one fashion or another for more than 25 years, working at economic consulting firms and global investment banks. Chandler attended North Central College for undergraduate work, where he majored in political science and the humanities. He holds master's degrees from Northern Illinois University and University of Pittsburgh in American History and International Political Economy. Currently Chandler teaches at New York University Center for Global Affairs, where he is an associate professor. A prolific writer and speaker he appears regularly in the press and has spoken for, and is an honorary fellow of, the Foreign Policy Association. In addition to being quoted in the financial press daily, Chandler has been published in the Financial Times, Foreign Affairs, and the Washington Post. In 2009, Chandler was named a Business Visionary by Forbes. In 2009, his book, Making Sense of the Dollar, was published by Bloomberg Press and received a Bronze Award from Independent Publishers.

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