The annual G20 Summit, where 20 nations meet, is currently underway in Osaka Japan. The major issues on the agenda are the ongoing trade war between the two biggest economies in the world, China and the U.S and the rising tensions between the U.S and Iran. This tension could threaten global oil supplies.
According to Bloomberg the meeting may ‘set the direction for the global economy and make the difference between war and peace in geological hotspots.’
The meeting between U.S President Donald Trump and Russian President Vladimir Putin has already taken place.
Eng Research has stated that Singapore will probably experience a “shallow
technical recession” in the third quarter due to the continuation of US-China
war is most likely weighing on the state’s export activities, which is one of
the most important means of monetary flow for the economy. According to Maybank
Kin Eng Research, exports will see a rise of 1.3 percent this year, which is a
decrease from the previous forecast, which was 1.6 percent.
The Supreme Court rejected to hear a challenge to President Donald Trump’s tariffs on steel imports into the U.S. The case was brought forward by the American Institute for International Steel that did so on the grounds that a part of the law under which the duties have been imposed violates the U.S Constitution.
The decision to set steel tariffs on steel imports was imposed in March by the U.S Court of International Trade. According to Euronews ‘Trump imposed 25 percent tariffs on imported steel and 10 percent tariffs on imported aluminum in March 2018 based on national security grounds.
Mayoral elections were held yesterday again in Istanbul, Turkey, after the results in March were annulled because of alleged voting irregularities in the process, according to the AK Party, the opposing party.
Last night’s results were the same as those in March, that Ekrem Imamoglu of the Republican People’s Party (CHP) is now the new mayor of Istanbul. This result comes as a blow to Tayyip Erdogan, whose party lost by almost 800,000 votes.
Asian stocks slipped
yesterday as fears of military confrontation in the Middle East Gulf were
raised after Iran shot down a U.S military drone, according to Reuters.
Tension between Iran
and the U.S is already high but the fact that President Donald Trump ordered a military strike against Iran after the drone incident, and then called it off
has raised the tension bar even higher. This news is in alliance with the New
The following figures
were released by Reuters this morning to show how the markets have reacted to
the escalated political tension.
Federal Reserve (Fed) Chairman, Jerome Powell announced in a press conference yesterday that interest rates will remain the same “but indicated that it could soon cut them as economic risks mounted and inflation remained stuck below target,” according to the New York Times.
Due to continuing trade tension and slowing global economic growth, a number of officials on the Fed’s policymaking committee expect to lower rates before the end of the year.
The social media
giant, Facebook Inc, is planning to release its very own cryptocurrency, named
Libra, by next year. The hope is that the Libra will be traded on a global
scale in the future.
According to reports
by Bloomberg, Facebook has said that the goal is for the cryptocurrency to be used
in everyday transactions and that Libra will not only be better than Bitcoin,
but it could even one day rival the US Dollar.
Alastair Marsh of
Bloomberg news said that this is a “really big deal, not only for crypto but
potentially for the global financial economy as well.
According to a report
by the British Chambers of Commerce (BCC) business investments across the UK
are coming to a halt and the economy is forecasted to see zero growth in the
As mentioned in
Parliament on Monday, the Bank of England’s forecast states that there is a one
in four chance of the UK economy dipping into recession. The manufacturing
sector is already in recession as stockpiles are now stagnant because Brexit
has not yet been settled, with car manufacturing down five percent in the last
quarter. This means that jobs and investments have been cut.
A few months ago,
predictions were that the oil market for 2020 would be the one to look out for
as “many market commentators predicted
that if $100/bbl-oil was going to make a comeback, it would happen in 2020,”
according to Bloomberg. But the release of the first official assessment of
2020 by the International Energy Agency on Friday shows persistent surpluses
could be accumulated next year. This does not indicate rising prices, which were
previously predicted and the reason why investors kept a keen eye on the oil
German exports fell
by 0.5 percent from April 2018 to April 2019, according to the Trade Balance
report released by the Statistisches Bundesamt Deautschland
The overall German
export value for the month of April 2019 was estimated to be 109.7 billion euros,
while the value of imported goods stands at 91.7 billion euros. In contrast to
German exports, imported goods increased by 2.1 percent in April 2019 year on
year. “After calendar and seasonal
adjustment, exports were down 3.7 percent and imports 1.3 percent compared with
March 2019,” the report states.