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US warns UK on giving Huawei access to 5G networks – report

The US steps up warnings to the UK on giving 5G access to Huawei

Huawei
According to the Financial Times, citing an interview with US national security advisor, Robert O’Brien, the White House has told the UK government that giving Huawei access to its 5G networks will present a risk to British secret intelligence services.
Adding that any decision to allow Huawei to take part in UK’s 5G networks may give the Chinese Communist Party access to “most intimate details” of UK citizens. O’Brien also noted that 5G is a national security decision, not “some sort of commercial decision”.
The full report can be found here (may be gated).

 

A bit of love lost between US and China again on this matter. This further reinforces the narrative that any larger scale trade deal to relieve tensions between the two countries will require a huge amount of give and take – and this is not a good example of that.

US FAA is said to have issued a warning of possible missile launches by North Korea

North Korea has said it will deliver a “Christmas gift” to the US.

This has put US and South Korean officials on alert this week for a potential long-range missile test.
The FAA is said to have pre-empted all this, with an alert to US commercial airliners earlier this month warning of possible missile launches ” prior to the end of 2019, or the in the early part of 2020″
If NK do test a long range missile it’d be the first in over two years
  • it would breach United Nations Security Council resolution
  • and would also breach Kim Jong Un’s personal pledge to Trump not to test such weapons
Would most likely result in swift, stern and decisive … tweets?
North Korea has said it will deliver a "Christmas gift" to the US.

BOJ minutes: Downside risks to overseas economies remained signficant

Minutes of the Bank of Japan October 2019 monetary policy meeting.

  • most members shared view that there had been no further increase in the possibility that the momentum toward achieving the price stability target would be lost
  • most members shared view downside risks to overseas economies remained significant, must continue to pay close attention to chance inflation momentum would be lost
  • one member said given downside risks, BOJ should continue to examine whether additional monetary easing would be necessary
  • some members said BOJ must not hesitate to take additional easing measures if there was a greater possibility momentum toward achieving the price target would be lost
  •  important to enhance cooperation with government on economic policies

Headlines via Reuters

Hedge fund CEO Jeffrey Gundlach says next big move for the US dollar is down

Gundlach is the founder of DoubleLine Capital, some remarks (via Twitter):

  • “One of the reasons I think the dollar has stayed strong this year has been the yield starvation that exists in the world.”
  • “Investors have been forced out of need and yield starvation to buy U.S. assets naked; meaning, they’re taking the dollar risk. And in spite of all that money coming into the U.S. dollar and not being hedged, the dollar has barely budged this year. “
  • “To me, that reinforces my forecast that the dollar’s next big move will be to the downside.”
And:
  • “Dollar cycles, as I’ve said repeatedly in the past, tend to go on for multiple years and be quite persistent. And they are highly correlated with the fed funds rate, particularly the fed funds rate versus what is going on in other central banks.” 
us dollar fed funds chart