The Reserve Bank of
Australia’s (RBA) Governor, Philip Lowe gave a speech about the economic
outlook and monetary policy to the Economic Society of Australia today, after
the RBA released its latest meeting minutes.
The highlight of the
speech was a suggestion that the bank could consider easing monetary policy at
next month’s meeting in order to drive faster hiring and take unemployment below
five per cent.
Lowe mentioned in his
speech that “the Australian economy can support an unemployment rate of below
five percent without raising inflation concerns.
are on Britain again as yesterday Theresa May was forced by her own party to
agree on when her time as prime minister would be up. As a result of this and
doubts that Britain will leave the European Union with a no deal, the Pound had
its longest slide since 2000 yesterday.
already agreed to step down as the country’s leader if her Brexit plan was
accepted but now, after a long meeting with the most powerful members of
Parliament in her Conservative Party, she has been forced to set a timeline for
a rise yesterday after U.S President Donald Trump decided to delay imposing
tariffs on auto imports for a period that could go up to six months.
started coming in that the tariffs of as high as 25 percent on cars could be
stalled and US Treasury secretary Steven Mnuchin’s stated that he thinks “we are
close to an understanding with Mexico and Canada,” stocks were sent into the
green. According to Yahoo Finance, the S&P 500 rose 0.58 percent towards the
end of market close and the Dow rose 9.45 percent and Nasdaq advanced by 1.13
Prime Minister Theresa May is planning to take the withdrawal agreement bill to
MPs to vote on at the beginning of June. According to Downing Street, this plan
will go through even if Labour and the government fail to reach a deal until
to one of the government’s main indicators, Japan’s economy is deteriorating
for the first time in six years.
shows that economic conditions fell 0.9 percent from February to March, thus
statisticians now claim that the economy is worsening rather than weakening.
This is the bottom grade that is used to describe an economy. The last time
such a grade was given to Japan’s economy was in 2013.
behind this downfall in the economy are the trade war between China and the U.
U.S President Donald
Trump raised tariffs on $200 billion worth of Chinese imports, taking tariffs
from ten percent to 25 percent overnight.
China reacted by
stating that it will have to take necessary countermeasures after this
development. China’s Ministry of Commerce added that “we hope the United States
will meet us halfway, and work with us to resolve existing issues through
cooperation and consultation.”
The news comes with
the assumption that U.S businesses will feel the effects of the rise in
After the U.S.
President Donald Trump commented on trade talks with China at a campaign rally
that “China broke the deal” U.S. stock futures dropped as much as 0.7 percent.
comments, along with Trump stating that “they can’t do that so they will be
paying,” also caused Asia stocks to fall and the Yan to strengthen by 0.2
percent against the Dollar.
to Reuters, the South Kospi dropped 3.4 percent to close at 2,102.01, which is
its biggest one-day percentage loss since mid-October 2018. Also, Japan’s Topix
European Commission released its Spring 2019 Economic Forecast today, stating
that growth in the European economy may continue at a more moderate pace. This
continuation of growth is expected for a seventh year in a row as real GDP is
expected to grow in all EU Member States. Even though there is uncertainty on a
global scale, the domestic tendencies are expected to support the European
economy and growth may gather speed in 2020.
The UK government will meet with the Labour party today to define how Brexit will progress. According to Foreign Secretary Jeremy Hunt, the talks may bring about compromise even though he does not personally favour a long-term customs union This could mean that the compromise would be to put a customs union in place short-term.
These compromises may be essential, otherwise, a general election or a second referendum becomes more of a probability.
food chain is being shaken by a pig virus, African swine fever, that started to
kill off pigs in China last summer and has now spread to Mongolia, Vietnam and
Cambodia. This has sent a shock wave through the global food chain with the
strengthening of the global meat market and the rising of prices.
that the African swine fever hit China first and is continuing to kill off pigs
there is a significant factor to the meat industry, as China farms more than
half of the world’s pig population.