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US to impose restrictions on additional Chinese media outlets

The US has earmarked another four state-run Chinese media outlets as foreign embassies says Reuters.

  • Doing so results in increased restrictions on their operations on US soil
  • five Chinese outlets were placed under the restrictions in February
The State Department action could come on Thursday says the report. To include:
  • China Central Television (CCTV)
  • China News Service
Reuters citing three people familiar with the matter said on Wednesday.
Adding to US-China strains further.

Italian autos, fashion companies may reopen next week – report

La Stampa reports on the matter

I haven’t seen any official details on this just yet but just something to take note, as the pressure on the government continues to mount in recent days.

Italy announced an extension to lockdown measures to 3 May but businesses are getting nervous and anxious about the decision, hoping for better news as the virus trajectory begins to slow down over the past few days.
Although lockdown measures were extended, businesses such as timber companies, bookshops and stores selling children’s supplies are allowed to reopen starting from today.

G7 statement still under discussion

Reuters citing an unnamed source

  • statement being drafted on coronavirus response
  • to be issued Tuesday or Wednesday
  • does not include specific language calling for fresh fiscal spending or coordinated interest rate cuts
  • finance leaders will pledge to work together to mitigate economic damage
  • statement still under discussion,. language subject to change
Uh-oh …. this’ll put a cat amongst the pigeons
Prompting Flows into yen

G20 financial leaders to say global economic growth is to pick up modestly in 2020, 2021

According to Reuters, citing a draft communique on the matter

World
  • There are signs of easing tensions
  • Downside risks to growth include coronavirus outbreak
  • To enhance global monitoring, stand ready to take further action
  • Monetary policy should continue to support economic activity, ensure price stability
Just take note that the summit will take place this weekend as we will see global leaders and central bank representatives come together to meet – for whatever reason.
The draft communique also says that financial leaders are to reaffirm their exchange rate commitments and conclusions on trade as per the Osaka summit last year.

Foxconn is still in negotiations with China’s government about reopening some some plants

Reuters report citing a source with direct knowledge:

  • Have received approval to recommence operations at plant in Zhengzhou
  • Still in talks about resuming production in plant in Shenzen
  • Still in talks about resuming production in plant in Kunshan
Reports have varied over the weekend on the success or not of Foxconn restarting operations at plants in China. This the latest.

US politics impeachment news – Republican senator hints at calling witnesses

Reuters with the item of note:

  • U.S Republican senator Murkowski, in question, says ‘dispute about material facts weighs in favour of calling additional witnesses’ in Trump impeachment trial
This, of course, does not mean witnesses will be called. The farcical circus is set to continue. But, for the politics folks, a glimmer of a crack appearing?

German 2019 budget surplus reportedly in low two-digit billions of euros

Sueddeutsche Zeitung newspaper reports

Germany

The paper says that Germany generated a federal budget surplus in the low two-digit billions of euros with higher-than-expected tax revenues offset by lower-than-expected interest payment, without identifying the source of its information.

For some context, that should see the figure come just below the 2018 figure of €11.2 billion. The actual figure will be published later today.
This is a bit of a setback for those hoping for Germany to loosen the purse strings a little as such a low surplus will give more reason for lawmakers to not do so. That said, it’s not like those hopes were that high to begin with anyway.

Iran believed to have deliberately sought to avoid US military casualties in strikes – report

Reuters report, citing US and European gov’t sources

It looks more and more like they dropped a few bombs in the nearby desert and may have even sent out warnings ahead of time.
If Trump chooses to de-escalate this looks like a sly move to save face without going to war. Then again, many wars have been started by a slight miscalculation.
Trump is set to speak at the top of the hour.

The UN Security Council will meet this week to discuss North Korea

Reuters (citing diplomats and a request from the United States) report the council will meet on Wednesday

  • it will discuss North Korea’s recent missile launches
Over the weekend NK conducted an unspecified “very important test” at its Dongchang-ri satellite launch site
I wonder if we’ll see a yen response? NK issues have, in the past, prompted yen buying (a flight to liquidity response, the USD also a beneficiary) but this has diminished.
North Korea kim yen

Japan – Reuters Tankan poll shows manufacturer outlook less pessimistic, service-sector sentiment three-month high

The Reuters Tankan seeks to track the BOJ report. Reuters is monthly, BOJ Tankan is quarterly.

Japanese manufacturers’ business outlook was less pessimistic in October
service-sector sentiment rose to a three-month high
 manufacturers voiced worry about the protracted trade war and slowdown in China’s economy
some Japanese firms do not see the impact of the global slowdown immediately hurting the economy
Sentiment index for manufacturers minus 5,
  • up two points from the prior month’s 6-1/2-year low of minus 7
  • index is expected to minus 6 in January
service-sector index climbed to plus 25
  • from plus 19 in the previous month
  • led by retailers who have likely benefited from consumers rushing to beat the Oct. 1 sales tax which went up to 10% from 8%
Poll of 504 large- and mid-sized companies, in which 248 firms responded
  • conducted Sept. 26 to Oct. 7