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OFFON

Romain
Fournier

Journalist
By the same author
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THE DAILY MACRO BRIEF: Devaluation of the yuan, Trump criticizes the Fed, Succession of May, Post-Brexit Agreement...

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06/11/2019 | 09:08am EDT

Trump feels disadvantaged compared to his Chinese counterpart, accuses the Fed of not listening to him and China of manipulating its currency. Between Brexit, the succession of the British Prime Minister, disappointing economic statistics and the fall of the pound sterling, the degree of uncertainty is at its highest in the United Kingdom.


Trump raises his voice. In its recent report, the US Treasury stated that no country had manipulated its currency in the last six months, not even China. However, yesterday the Chinese yuan was around 6.93 to the dollar, reaching a low since last November, which was not lost on Trump. He accuses China of lowering its currency to counter the effects of tariffs and threatens to impose new customs duties if its meeting with Xi Jinping in late June, on the sidelines of the G20, does not take place, or does not lead to any agreement.

Source: Bloomberg, 11.06.19

Xi does what he wants. Not Trump. The American President is annoyed that his Chinese counterpart dictates his will to the People's Bank of China while the Fed does not listen to him. Donald Trump, who feels disadvantaged compared to Xi Jinping, once again criticized the Federal Reserve and accused it of making a big mistake in raising its rates.

Heavy atmosphere in the United Kingdom. Disappointing economic statistics (PMI, GDP, manufacturing, industrial production, etc.) associated with Brexit risks intensify investors' fears and weigh on the pound. The British currency is at its lowest level since mid-January against the euro.

Source: Bloomberg, 11.06.19

In this context, the race to succeed Theresa May is off to a flying start. Boris Johnson, the current favorite candidate, has made a buzz by stating that the United Kingdom will not pay the invoice required by Brussels and has attracted the wrath of Europeans: "not honoring its payment obligations is a breach of an international commitment equivalent to a default on its sovereign debt" (Emmanuel Macron). Eight men and two women are in the race to succeed him at 10 Downing Street.

In other news. The United Kingdom and South Korea have concluded a post-Brexit trade agreement to maintain trading conditions between the two countries. The Italian President of the Council, Giuseppe Conte and the two Vice-Presidents Matteo Salvini and Luigi Di Maio will meet with the Minister of Economy Giovanni Tria "to develop a strategy to be adopted in discussions with Europe in order to avoid an infringement procedure for the country and to work together to finalize the budget". While the Iranian Foreign Minister received his German counterpart, he warned yesterday that "an economic war against the Iranian people cannot be expected to continue and that those who support this war or have started it will remain safe". Eurozone investor sentiment fell to -3.3 in June, from +5.3 in May.
Stocks mentioned in the article
ChangeLast1st jan.
US DOLLAR / CHINESE YUAN RENMINBI (USD/CNY) -0.06% 7.0908 Delayed Quote.3.05%

Romain Fournier
© MarketScreener.com 2019
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