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.

Read More

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.

Related Items

Tech Talk for Monday April 22nd 2019

  The Bottom Line U.S. equity markets were mixed again last week despite better than consensus first quarter results released to date by S&P 500 and Dow Jones Industrial companies. Strength in the U.S. Dollar Index dampened enthusiasm for U.S. equities. Canadian equities performed slightly better ...

Monday: Existing Home Sales

Weekend:• Schedule for Week of April 21, 2019Monday:• At 8:30 AM ET, Chicago Fed National Activity Index for March. This is a composite index of other data.• At 10:00 AM: Existing Home Sales for March from the National Association of Realtors (NAR). The consensus is for 5.30 million SAAR, down ...

US REITs Suffer Biggest Weekly Loss So Far In 2019

Real estate investment trusts (REITs) in the US tumbled last week, posting the biggest setback for the major asset classes during the shortened trading week that ended on April 18, based on a set of exchange traded funds. The loss, the deepest for this corner of the market since a plunge late last ...

Surge in Oil Punctures Holiday Markets

Overview: With many centers closed for the extended holiday, the calm in the global capital markets has been punctuated by reports that the US is considering ending its exemption for eight countries to have bought Iranian oil over the past six months.  The waivers were to end on May 2, but previ ...

Cool Video: Discussion of the Deflationary Risks in Japan and Brexit

I joined CNBC Asia's Amanda Drury and Sri Jegarajah via Skype earlier today as the new week was beginning in Asia.  In this three minute clip, we discuss the outlook for the BOJ and sterling.   Most of the rise in Japan's inflation is due to food and energy prices.  Despite an aggressive b ...

Building a Sustainable Workforce with the integration of AI Solutions

Canada has emerged as a leader in the global race to develop artificial intelligence(AI) and we need to ensure the continued freedom to operate and our country’s business competitiveness. Through a series of roundtables this Spring, we are identifying positive outcomes for AI, exploring the range ...

The Hunger for Muni Bonds (And Gold!) Is Real

Another Tax Day has come and gone. Although it might be some time before we get the full picture of what Americans earned and paid in taxes last year, it’s probably safe to assume that the top 1 percent of earners shouldered most of the U.S. tax burden. In 2016, the most recent year of a ...

Barrick-Newmont Joint Venture Clears Regulatory Hurdles

(Kitco News) - An agreed-upon joint venture for Nevada mines owned by Barrick Gold Corp. (NYSE: GOLD; TSX: ABX) and Newmont Goldcorp Corp. (NYSE: NEM; TSX: NGT) has cleared all the required regulatory conditions, the two companies announced Monday. ...