Brexit Investment Flow, Bitcoin, US China Deal, Lagarde asked fiscal Policy
Nikolas Stylianou
25 November 2019
Investment Flow Boris Johnson Promises after Brexit
Prime Minister of Great Britain Boris Johnson express his beliefs for successful Brexit Deal, presenting his conservative party’s election manifesto ahead of December 12 election. He stated that leaving from EU will enhance the reliability and confidence of business. Additionally, he committed tax cuts and public spending around 23.5 billion between 2020 and 2024 and he promised that after Brexit accomplishment, lot of investments will be implemented. The Conservative party confirmed in its manifesto that it would not extend the Brexit beyond December 2020 and they will proceed to negotiations for trade agreement next year. As they mentioned the only way to adjust the Brexit is by ensuring the Conservatives self-reliance in parliament. In the event that conservatives prevail, the citizens that would want visit Britain from the European Union will have access to unemployment benefits and housing issues.
Where is Bitcoin going?
Bitcoin continuously facing lower levels for first time in one-month period. The cryptocurrency has fallen below 200-day moving average and this situation get influenced by many factors and as analysts mentioned the coin will not cover quickly. The most remarkable reason that the coin hit lower lows is that the volume of transaction moves very low because there is no new cryptocurrency inflow in the market. Alongside, stocks securities and gold have declined in narrow levels as a result people lost their interest in buying these assets in the present and in the near future. Moreover, observers from Shanghai express their intension to liquidate companies that get involved into digital assets and even warned of illegal transactions. Finally, Bitcoin fell to 1.9% last Thursday and about 14% overall for this month, according to Bloomberg data. Remains to see whether Bitcoin will hit new major lows till the of current year that could be used as reference for the upcoming year.
US and China trade deal hope
Robert O’Brien US national security adviser stated that an initial trade agreement with China is still active and there is a possibility for implementation by the end of the year, however Washington will not hide what happens in Hong Kong as there are several concerns regarding the Chinese crackdown on anti-government protests in Hong Kong a factor that could lead to more complicated efforts for US and China to stop their trade war. It is worth noting that non-cash payments in China recorded almost 55% increase in the last quarter of 2019 as PBoC (people’s bank of China) presented. The amount of transactions from bills credit cards and online payments reached 131 trillion dollars. Meanwhile the Chinese government’s top diplomat expressed his opinion for the United States, saying that is the biggest source of instability. He also added that US engaged into unilateralism, protectionism and is damaging multilateralism and the multilateral trading system.
Christine Lagarde has called for higher rates of public investment
Christine Lagarde seems that she expressed little fake impression in her first major speech as president of the European Central Bank. Lagarde mentioned the need of policy reforms for converting the EU as the world’s second largest economy, potential economy that could lead to higher rates of domestic demand and long-term development. European Economy last year reached 11.56 trillion according to Eurostat. China economy last year rose up to 13.1 trillion dollars while the US GDP hit 21 trillion dollars in 2019. As she said the European Union economy growth includes the fact that countries inside EU such as Sweden, Britain do not use euro, so if “Europe’s potential” reflects to those countries that are not represented on the ECB, the economy could be larger than China. In addition, she mentioned the need of fiscal policy to enhance the economy like Germany does and that monetary policy could achieve its targets faster.
