1. Donald Trump intends to postpone a decision on duties on European cars for 6 months
2. Reserve Bank of Australia may launch QE program in early 2020
3. Hong Kong remains tense
According to news agencies, Donald Trump will most likely decide to postpone the introduction of 25 percent duties on the European auto industry for another 6 months. The American president should make a corresponding statement in the middle of the week. Trump believes that Japanese and European automakers are doing serious damage to the American auto industry, which is a threat to US national security. The United States has already signed an interim trade agreement with Japan, which partially solves this problem. An agreement has not yet been reached with the EU.
Analysts at JP Morgan believe that the Reserve Bank of Australia can launch the QE program in early 2020. Previously, the regulator revised its forecasts for key economic indicators and adjusted its plans. But, according to experts, the current monetary policy will not be able to achieve the targets. Therefore, in February 2020, the RBA can not only reduce the rate by 0.25%, but also start an asset repurchase program.
Today, the Chinese Foreign Ministry condemned acts of violence during the ongoing riots and protests in Hong Kong. The ministry believes that all criminals should be deservedly punished. Shortly before this statement, the US State Department commented on the situation in Hong Kong. They called on China to respect the autonomy granted to the administrative region.
News worth paying attention to today:
9:30 GMT. UK: labor market report
10:00 GMT. Germany: ZEW Institute Indexes