Nigel absent UK elections, AUS ineterest rates, Oil, China-US

Nikolas Stylianou

04 November 2019

Nigel Farage will be absent from the UK early election: 

The member of the British politician and broadcaster Nigel Farage announced yesterday he will be absent from the early elections at 12 of December and he will proceed with a campaign against Boris Johnson Brexit Deal. He announced the 600 candidates who will serve the purpose of Brexit across the UK. He had warned Johnson from the first time that if he did not accept the alliance, he will be against him. Boris Johnson expressed his sadness about his failure to achieve the Brexit Deal last week as he promised, however he noted that his Brexit deal is the only objective.   US President Donald Trump yesterday called on British Prime Minister Boris Johnson and Brexit party leader Nigel Faraj to join forces to secure the prospect of a broader trade agreement between London and Washington following the United Kingdom’s exit from European Union.

Australia – Easing Interest Rates influence economy:

Interest Rates Cuts in Australia most probably could be driven in a harmful evolution instead of economy’s health. Central Bank of Australia could manage better to avoid facing the reversal interest rate before begins to produce unintended consequences as a result the consumer sentiment which shows that typical household is more cautious. This indicates that people prefer to spend less and save more, so this very low interest rates will not drive the economy of the country on a positive impact because people afraid that something is wrong.

Oil Storm is coming:

 An increased productivity of Oil is on the road whether people need it or not. Although that there are several concerns about climate changes that cause the Oil demand which is slowing, the flood of crude will arrive from non-usual producers (Saudi Arabia, Russia, United States) such as Brazil, Canada, Norway and Guyana. Countries that are either not known for oil or are known for lack of Oil productivity. Canada is the 6th largest crude oil producer and this is the largest commodity export from 2018. Canadians managed to increase the number of exported barrels this year by reaching more than 300,000 per day.

World’s biggest economies China & United States in agreement. Is this going to be the end up of the trade war?

 It is widely known that Donald Trump began setting tariffs and many trade barriers on China in order to reduce the U.S trade deficit and start promoting domestic manufacturing. This trade war created obstacles for farmers and manufacturers and also drove prices higher for consumers.  Chinese President Xi Jinping and US President Donald Trump is expected to have a meeting on November 17 aiming to deal with a temporary trade deal. This deal would take care of the farmers and will also take care of a lot of the banking needs as Donald Trump expressed. China would lift the current ban on US poultry imports and will recognize the American public certification system regarding products of meat. Note that Beijing has promised since October to purchase American agricultural products if United States intended to postpone a tariff in Chinese goods that reached almost 250million dollars. Analysts perspectives shows new tariffs of 15% coming on about 160billion dollar of Chinese imports on consumer electronics such as smartphones. If the two leaders finally sign the agreement this would be prevent. They would finally not allow devaluations on currencies in order to gain trade advantages. The interim deal is also expected to contain a provision on intellectual property protection, a key US demand. The temporary deal must contain a provision on intellectual protections an issue that United states demand to be resolved.