Recently, President of Eurasia Group, Ian Bremmer, stated his concerns regarding the US-China trade war is getting “considerably worse”.
Moreover, rumors have spread about the U.S. was considering delisting Chinese companies that have been stifled for now.
Both sides don’t assume a breakthrough deal to happen, not until after the 2020 U.S. election.
Despite this, there is a sturdier push to accomplish bilateral deals with Japan and India.
Meanwhile, the Brexit deadline moves steadily closer, as the world looks forward to how UK Prime Minister Boris Johnson will justify his pledge to deliver Brexit on October 31st.
He will be facing the threat of dismissal by the Queen if he flops to ask for a Brexit extension. In addition, PM Johnson is under extensive pressure to deliver a deal “come what may”.
PM Johnson can still request a delay by October 19.
Some of the opposition’s side fear this will consent too little time to take action through courts. This is if he tries to avoid legislation and push a no-deal break.
Changes during the U.S.-China Trade Dispute
In other major market news, the CAD GDP data indicated that tonight it will have a significant impact on the currency.
Changes were showing in the inflation-adjusted worth of all goods and services. It has served as the broadest measure of economic activity and the primary gauge of the economy’s health.
Elsewhere, the announcement of new tariffs by the U.S. and China will be in the September-December 2019 period.
There is yet to see whether any of the sides were affected in this month-long trade war. For the time being, it has only led to more ambiguity and slower global growth.
Given this set-up of extensive economic tension, negotiation and understanding have become key measures for reestablishing global economic success.
In the European context, González-Páramo noted that it is vital for the European Union to start concentrating on developed policies meant at offsetting potential adverse impacts.
Lastly, one of the possible solutions is to strengthen its trade development strategies.