More details come out from the US-China deal. EU goes ahead with the Green Deal
14 January

More details come out from the US-China deal. EU goes ahead with the Green Deal

 

The European Commission will propose how the EU can pay for shifting the region’s economy to zero CO2 emissions in 2050 while protecting areas and industries most dependent on coal from taking the brunt of changes aimed at preventing climate change. The commission is to unveil details of its Sustainable Europe Investment Plan to mobilise investment of 1 trillion euros over 10 years using public and private money to help finance its flagship project — the European Green Deal. All EU countries except Poland agreed last month they should transform their economies over the next 30 years to not emit more carbon dioxide than they absorb, so as to limit global warming and resulting climate changes. The deal came amid overwhelming support from Europeans who see irreversible climate change as one of their biggest threats, more so than terrorism or unemployment. To secure Warsaw’s support, the commission is to unveil the details of how it can help it financially through a Just Transition Fund that would generate 100 billion euros over seven years to ease the transition of coal-dependent regions to a “green” economy.

 

China has pledged to buy almost over 80 billion USD of additional manufactured goods from the United States over the next two years as part of a trade war truce, likely giving a much-needed boost for planemaker Boeing. Under the terms of the trade deal to be signed tomorrow in Washington, China would also buy over $50 billion more in energy supplies, and boost purchases of U.S. services by about $35 billion over the same two-year period. The Phase 1 agreement calls for Chinese purchases of U.S. agricultural goods to increase by some $32 billion over two years. The numbers, expected to be announced at a White House signing ceremony between Trump and Chinese Vice Premier Liu He, represent a staggering increase over recent Chinese imports of U.S. manufactured goods. When the Phase 1 trade deal was struck on Dec. 13, U.S. officials said China had agreed to buy $200 billion in additional U.S. farm products, manufactured goods, energy and services over the next two years, compared to the baseline of 2017.

 

Oil prices steadied after recent declines, as investors focused on the signing of a preliminary trade deal between the United States and China, the world’s top oil consumers, and on expectations of a drawdown in U.S. stockpiles. However, price gains were capped by receding Middle East tensions, with both Tehran and Washington desisting from any further escalation after this month’s clashes. Brent crude was trading at $58.03 and U.S. West Texas Intermediate crude was at $63.82 a barrel. The benchmarks lost about 5% and 6%, respectively, last week. Oil prices were supported ahead of the signing at the White House on Wednesday of a Phase 1 U.S.-China trade deal, which marks a major step in ending a dispute that has cut global growth and dented demand for oil. China has pledged to buy more than $50 billion in energy supplies from the United States over the next two years. China’s crude oil imports in 2019 surged 9.5% from a year earlier, setting a record for a 17th straight year, as demand growth from refineries built last year propelled purchases by the world’s top importer. Elsewhere, Saudi Arabia’s energy minister Prince Abdulaziz said it was too early to talk about whether the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, would continue with production curbs set to expire in March.

 

Gold prices fell almost 1% ahead of the signing at the White House on Wednesday of the Phase 1 trade deal and as a de-escalation in U.S.-Iran tensions in the Middle East reduced bullion’s safe-haven appeal. U.S. and euro zone government bond yields rose as the trade deal marks a major step in ending a dispute that has cut global growth and boosted demand for such safe-haven assets as bonds, gold and currencies like the Japanese yen and Swiss franc. The Dow Jones Industrial Average rose 83.28 points, to 28,907.05. The S&P 500 gained 22.98 points, to 3,288.33. In currency markets, the offshore Chinese yuan a 5-1/2-month high after news that the US will withdraw from calling China a currency manipulator and the yen dropped to a 7-1/2-month low as sentiment rose on the trade outlook. The euro was up 0.13% to $1.1134 and the yen weakened 0.44% versus the greenback at 109.94 per dollar.

 

Blog Section

Last Updated

Share This Post

Why is PhillipCapital UK the right choice for you?

Request More Information