Trump: US is not accepting Paris Agreement

The US President Donald Trump said that the country is not accepting a global Climate Change standard, which would mean a loss of the country’s production by over 20 %. He commented the Climate Change issues in the press conference in Osaka, Japan today.

According to him, the US air is now the cleanest it has ever been and he thinks that countries that have accepted the climate standard (the Paris Agreement) will loose their power with manufacturing.

Trump mentioned also that he does not like the subsidies related to the renewable wind power the US has at the moment.

– I do not like it, he said.

President Donald Trump did not signed the climate change communique of the G20 nations in Osaka. This so-called 19+1 formula on climate change  is similar to the Argentina meeting last year.  This means that the other countries are fully committed to the implementation of the Paris Agreement.

Business Finance

Stocks closed down in NY- US data and trade tariffs

The US equities closed down today due to weak consumer confidence data and the trade tariffs between the US and China. The US and China leaders are meeting this week in G20 meeting in Japan and the information from the Federal Reserve has been that the tariffs can increase the risk of slower growth globally if there is no more confidence in the markets.

Dow Jones closed down 0,67 % to 26 549 points, S&P 500 index down 0,95 % to 2917 points and Nasdaq down 1,51 % to 7884 points. In Europe the FTSE 100 -index closed up 0,08 % to 7422 points, while the equities on the continent were down. In Germany the DAX closed down 0,38 % to 12 228 points and in France the CAC 40 down 0,13 points to 5514 points.

The US consumer confidence and new home sales were both below markets expectations. On the other hand on the M&A side, the deal volumes and values have been record high, according to Bloomberg data. On Tuesday, AbbVie said it would buy Allergan company, the Botox maker, for 63 billion dollars.

The G20 meeting on Friday and Saturday in Osaka, Japan will give more information while the US President Donald Trump and the Chinese President Xi Jinping will have their discussions then. According to Bloomberg, the US officials have signalled that the trade deal is unlikely to happen.

The US markets have been pricing a 50 basis points rate cut for the next Federal Reserve meeting in July, but according to St.Lous Fed President James Bullard such a rate cut would be too much. He commented the situation in a Bloomberg interview.

The central bankers have been discussing about the cryptocurrencies and Facebook´s new Libra coin in the central banks meeting in Switzerland today. The question of financial stability, consumer and regulatory standpoint are the major issues for the tech company and some believe Libra is not going to be a Bitcoin.

According to Reuters, the Facebook other issues related to privacy concerns and hate speeches have been the major topics and central bankers are requiring more information from Facebook in order to proceed with the new currency. The Britain’s Financial Conduct Authority (FCA) also commented the issue today with the same tone of voice.

In London, the discussions about the Brexit deal and the new Prime Minister have continued. Boris Johnson or Jeremy Hunt will be the next Prime Minister for the UK and the new leader will be announced on the 23rd of July. The deadline, October 31st will be soon, while the UK Parliament is starting their summer holidays on July 25 and the MPs will return on the September 3rd.

The euro was trading slightly up 0,01 % to 1,1368 dollars and the sterling up 0,06 % to 1,2696 dollars.

In Asia, the stocks were also down, the Shanghai All ended down 0,87 % to 2982 points, the Hang Seng in Hong Kong down 1,15 % to 28185 points and the Nikkei-index in Japan down 0,43 % to 21 193 points.

 

 

 

 

 

 

Business Finance

Trump and Xi to have extended meeting in G20

The US President Donald Trump said today that he and the Chinese President Xi Jinping will have extended meeting during the G-20 meeting in Osaka, Japan next week.

Mr Trump tweeted that he had a “very good” phone conversation with Mr Jinping today and he confirmed that the trade negotiations teams will begin talks prior the meeting.

The meeting will take place in Osaka, where the G-20 leaders will gather on June 28-29. According to the Japan Prime Minister Shinzo Abe the meeting in Osaka, Japan is determined to lead global economic growth by promoting free trade and innovation, achieving both economic growth and reduction of disparities, and contributing to the development agenda and other global issues with the Sustainable Development Goals (SDGs) at its core. Through these efforts, Japan seeks to realize and promote a free and open, inclusive and sustainable, “human-centered future society.”

 

 

 

 

 

 

 

 

 

Business Finance

Trump and Xi to meet in Japan in June

The US President Donald Trump and his Chinese colleague President Xi Jinping are meeting in Japan in the G20 meeting in June. According to Reuters, the White House economic adviser Larry Kudlow confirmed the meeting on Fox News Sunday.

The trade situation with the both countries have been stable after the news that the US raised the tariffs on Friday and threatened to put tariffs on all goods from China if there is no deal. The new deadline is agreed to be one month long according to Bloomberg News.

The G20 meeting will be held in for the first time in Japan. The G20 leaders will meet on the 28th and 29th of June in Osaka.Also the Finance Ministers and Central Banks Governors meeting and the Foreign Ministers’ meeting will also be at the same time in Japan, but in different locations.

Business Finance

G20: US and China to halt tradewar

During the G20 meeting in Argentina the US and China leaders, President Mr Donald Trump and China President Mr Xi Jinping agreed to halt the escalating trade war.

According to the White House spokesperson,  President Trump would not follow through his threat to raise tariffs on Chinese goods from 10% to 25% in the new year.  This has been the major issue in the discussions and also one of the biggest threats to global economy.

The countries also agreed that China will buy more agricultural, energy and industrial products from the United States. The aim is to reduce the trade imbalance between the countries.

According to White House, this new statement gives both countries 90 days time to agree upon new trade terms. If such agreement is not ready, the former tariffs increase from 10% to 25 % will become into force.

The financial markets ended up in Wall Street on Friday evening. Dow Jones ended +0,79 % to 25538, S&P 500 + 0,82 % to 2760 and Nasdaq 0,79 % to 7330 points. In Europe the markets were down with the FTSE 100 -index -0,83 % to 6980 and German Dax-index -0,36 % to 11 257 and CAC 40-index in Paris -0,05% to 5003.

Euro declined 0,67 % to 1,13 US-dollars and UK sterling ended down 0,33 % to  1,27 US-dollars.

Business

G20: Sustainable Food and global growth

The Group 20 leaders agreed to promote Sustainable Food Future during their Argentina meeting this weekend. According to the declaration, the group is commited to tackle the challenges of food security.

– We will promote sustainable agriculture, conscious
of the importance of sustainable soil, water and riverbanks management.
We encourage the voluntary use and sharing of innovative as well as traditional agricultural practices and technologies. We highlight the importance of collaboration among public and private stakeholders to strengthen risk management, they said in the statement.

The leaders also raised the importance of protecting the biodiversity and providing effective responses to reduce the impacts of extreme weather conditions on agriculture.

For example this year has been a very good wine year in Europe due to the high summer temperatures, but in California, the lack of fresh water and fires have had negative impact on the wine production. The Climate Change is having long-term impact over the farming and the way soil and water is being used. New technologies and AI is then needed to scale the change.

The leaders agreed to mitigate the Climate Change according to the Paris Agreement. The United States reiterated its decision to withdraw from the Paris Agreement .

– We welcome the strong global economic growth while recognizing it has been increasingly less synchronized between countries and some of the key risks, including financial vulnerabilities and geopolitical concerns, have partially materialized, the leaders also mentioned.

They said also to be commited to achieve a strong and sustainable growth and to enhance the confidence in order to proceed with the tradetalks. The group also called for the reform of the World Trade Organization, WTO.

Next year the meeting will take place in Japan. The G20 is a forum of leading economies in the world. The G20 is made up of 19 countries and the European Union. The 19 countries are Argentina, Australia, Brazil, Canada, China, Germany, France, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States.

The countries represent 85 % of the global economic output and 80 % of the global investments.

Business