July 15, 2019
United States (US): Trump Sees Slowing Chinese Growth Pressuring Beijing on Trade; Trump to Sign Order on US Content Thresholds for Steel, Iron
President Trump seized on slowing economic growth in China as evidence that US tariffs were having “a major effect” and warned that Washington could pile on more pressure as US-China trade talks sputtered along. China’s economy had slowed to 6.2% in Q2, its weakest pace in at least 27 years, amid ongoing trade pressure from the US. “This is why China wants to make a deal with the US and wishes it had not broken the original deal in the first place,” Trump tweeted. President Trump and President Xi last month agreed to another truce in the year-long trade spat between the world’s two largest economies. That agreement was aimed at kickstarting stalled negotiations, but no deadline has been set for the process to conclude. President Trump has grown increasingly frustrated that China has not delivered on what he viewed as a promise to start buying more US agricultural goods, even as talks continued.
President Trump is set to sign an order seeking to increase the domestic content threshold for American-made iron and steel in federal procurements. President Trump aims strengthen his “Buy American” platform by further moving toward increasing “domestic content threshold for American-made iron and steel from 50% to 95%.”
European Union (EU)
Euro traded at 1.1257 against USD at 9:00 am PST.
Germany: German Economic Trends to Remain Weak in Q2
Industrial activity is set to remain sluggish amid moderating foreign demand, and the service sector growth is likely to lose steam, suggesting that economic trends in the biggest euro area economy will be weak in Q2. In Q1, the German economy grew 0.4% quarterly, which was the first such increase in three quarters. The bank downgraded its growth outlook for 2019 to 0.6% from 1.6% and that for next year to 1.2% from 1.6%. The German manufacturing sector has not yet recovered entirely from the slump seen over the last year, that was mainly due to the sluggishness in the automobile sector.
United Kingdom (UK): BoE Picks World War Two Code-Breaker Turing for Banknotes
British Pound traded at 1.2523 against USD at 9:00 am PST.
BoE said that Mathematician Alan Turing, whose cracking of a Nazi code helped the Allies to win World War Two but who committed suicide after being convicted for homosexuality, will appear on the Bank of England’s new 50-pound banknote.
China: China Says Will Cut Ties with US Firms Selling Arms to Taiwan
Onshore Chinese Yuan traded at 6.8769 per USD at 9:00 am PST and offshore Chinese Yuan traded at 6.8742 per USD.
China's government and Chinese companies will cut business ties with US firms selling arms to Taiwan, the Chinese foreign ministry has said, in a move likely to worsen already poor ties with Washington. China claims self-ruled and democratic Taiwan as its own and has never renounced the use of force to bring it under Beijing's control. China regularly calls Taiwan the most sensitive issue in its relations with the US. Last week, the Pentagon said the US State Department had approved the sale of the weapons requested by Taiwan, including 108 General Dynamics Corp M1A2T Abrams tanks and 250 Stinger missiles.
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