Your Thursday briefing – Limit Markets – Medium
US President Trump said on Wednesday that he predicts either a “good deal” or no deal between the world’s two largest economies as US-China trade talks progress via video conferences.
American trade deficit at its highest ever
The US goods trade deficit reached a record high in 2018 as strong domestic demand fueled by lower taxes pulled in imports, despite Trump’s protectionist trade agenda. The Commerce Department said on Wednesday that a 12.4 percent jump in the goods deficit in December had contributed to the record $891.3 billion goods trade shortfall last year.
The Trump administration’s revised five-year program to expand offshore drilling in most federal waters will be released “in the coming weeks,” officials said on Wednesday. It was followed by the months of opposition from the coastal state lawmakers trying to prevent exposing their shorelines to oil and gas exploration.
After consulting with other bank regulators, the US Federal Reserve will keep its Countercyclical Capital Buffer at zero percent releasing the bank from holding additional capital in case of economic downturn.
Huawei vs United States
Huawei Technologies filed a lawsuit on Thursday against the United States responding to the unconstitutional law limiting its US business for fear Beijing could use its telecoms equipment for spying.
Alternatives to Irish backstop
Britain keeps finding alternative arrangements to eliminate the need for an Irish “backstop” in PM Theresa May’s Brexit deal. Even in case of no deal Brexit, May’s government outlined the steps to keep the Irish border open. The government would establish three advisory groups to help develop arrangements that could be used from the beginning of 2021 when Britain post-Brexit transition period ends.
As the no deal Brexit is likely to occur, British trade minister Liam Fox said the government would set out the reciprocal import tariffs as Britain would automatically face with the export tariffs due to leaving the EU.