G-20 Meeting - Trade Tariffs between USA and China
U.S. President Donald Trump and Chinese President Xi Jinping agreed to keep their trade war from escalating with a promise to halt the imposition of new tariffs for 90 days as the world’s two largest economies negotiate a lasting agreement. The U.S. will leave existing tariffs on $200 billion of Chinese goods at 10 % and refrain from raising that rate to 25 % as planned on Jan. 1. In exchange, the U.S. wants to discuss Trump’s biggest complaints about Chinese trade practices which include intellectual property theft, non-tariff barriers and forced technology transfer. This may lead to a very good week for markets, since in the past few days there has been an expectation that an outcome of this kind would happen.
Governor of the Bank of England speech
The governor of the Bank of England will deliver a speech tomorrow. Governor Carney’s has been very pessimistic on his outlook regarding the current situation of Brexit negotiations stating that if the current bill proposed by Theresa May is not accepted, the sterling will drop by 25%. This bill is likely not to pass through the House of Commons. Therefore, this will be an interesting speech to follow before the vote of the bill and many investors are looking forward to it.
The Eurostat will announce GDP growth for the Eurozone for the 3rd quarter of 2018. It is expected to remain stable both for year on year and quarter on quarter
The US Department of Labor will release the Average Hourly Earnings year on year for November. This is a very important indicator for the labor market and the FED pays close attention to this when setting interest rates.