Trump calls for World Bank to stop loaning to China By Reuters



WASHINGTON (Reuters) – U.S. President Donald Trump on Friday called for the World Bank to stop loaning money to China, one day after the institution adopted a lending plan to Beijing over Washington’s objections.

The World Bank on Thursday adopted a plan to aid China with $1 billion to $1.5 billion in low-interest loans annually through June 2025. The plan calls for lending to “gradually decline” from the previous five-year average of $1.8 billion.

“Why is the World Bank loaning money to China? Can this be possible? China has plenty of money, and if they don’t, they create it. STOP!” Trump wrote in a post on Twitter.

Spokespeople for the White House and the World Bank did not immediately respond to requests for comment.

The World Bank loaned China $1.3 billion in the fiscal 2019 year, which ended on June 30, a decrease from around $2.4 billion in fiscal 2017.

But the fall in the World Bank’s loans to China is not swift enough for the Trump administration, which has argued that Beijing is too wealthy for international aid.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



World Bank urges Gulf countries to prioritize environmental sustainability By Reuters


World Bank urges Gulf countries to prioritize environmental sustainability

By Davide Barbuscia and Tuqa Khalid

DUBAI (Reuters) – The World Bank has urged countries of the Gulf Cooperation Council (GCC) to prioritize environmental sustainability while diversifying their economies away from a reliance on hydrocarbon revenues in an era of lower energy prices.

The six GCC states – Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman – have, as part of their diversification strategies, largely been developing energy-intensive heavy industry such as the petrochemical sector.

In a report published on Wednesday, the World Bank recommended the establishment of “effective” environmental management institutions and practices, in addition to scaling up investments in renewables.

“Looking forward, a diversification scenario that does not consider environmental sustainability is no longer a viable option,” said Issam Abousleiman, regional director for the GCC countries at the lender.

Between 2006 and 2018, GCC countries committed about $10.1 billion to investments in renewable energy but their combined renewable output totaled just 867 megawatts, less than 1% of the 145 gigawatts of installed power capacity at the end of 2018, said the World Bank.

It added that subsidized fuel prices for oil and gas power plants remain a barrier to the implementation of renewable energy projects.

Countries in the Gulf region are dealing with sluggish economic growth this year, with low energy prices and OPEC-led production cuts offsetting improvements in non-oil sectors.

The World Bank expects Saudi Arabia, the largest Arab economy, to grow 0.4% this year, below Riyadh’s own forecast of 0.9%, while it sees growth in the UAE at 1.8%, below the 2.3% forecast of the UAE central bank.

Qatar’s economy is expected to grow 0.5% this year before accelerating to 1.5% in 2020 and 3.2% in 2021 and it is the only GCC country expected to post a fiscal surplus during the three-year period, said the World Bank.

But it added that Qatar, as well as Kuwait and Oman, should avoid delaying the introduction of a value added tax (VAT), needed to reduce the fiscal impact of oil price volatility.

Oman, whose economy is particularly vulnerable to oil price swings, said earlier this year its plans to introduce VAT were on track, without providing a date.

Saudi Arabia, the UAE and Bahrain have introduced VAT over the past two years.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Trade optimism lifts world shares By Reuters


© Reuters. FILE PHOTO: Signage is seen outside the entrance of the London Stock Exchange in London

By Ritvik Carvalho

LONDON (Reuters) – World shares staged a cautious rally on Monday as investors held out for some progress in U.S.-China trade talks, while the dollar dipped after its latest rally on the back of strong U.S. economic data.

The MSCI All-Country World Index, which tracks shares across 47 countries, was up 0.2%.

European shares rose for the second straight session following reports that Washington and Beijing were nearing a trade agreement. The pan-European index was up 0.7% at 0837 GMT, led by trade-sensitive miners. ()

Britain’s index was up 0.7%, Germany’s rose 0.5%, and France’s index was up 0.6%.

A Chinese state-backed tabloid said on Monday China and the United States were “very close” to an initial trade agreement, adding to optimism from Friday, when the presidents of both the countries reiterated their desire for a deal.

China said on Sunday it would seek to improve protections for intellectual property rights, including raising the upper limits for compensation for rights infringements.

“China being prepared to look at intellectual property is obviously the catalyst for a nice move higher, or a return to the highs earlier this month,” said Michael Hewson, chief markets analyst at CMC Markets in London.

Earlier in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan bounced 0.7%, after losing 0.4% last week.

Japan’s firmed 0.7%, while Australian stocks rose 0.5% and Shanghai blue chips 0.3%.

E-Mini futures for the added 0.2%. ()

On Saturday, U.S. national security adviser Robert O’Brien said an initial trade agreement with China is still possible by the end of the year, though he warned Washington would not turn a blind eye to what happens in Hong Kong.

The comments add to worries that a Chinese crackdown on anti-government protests in Hong Kong could further complicate the talks.

“The fact that talks are still happening remains a positive,” said Robert Rennie, head of financial market strategy at Westpac. “Markets are showing some signs of tiring of the steady drip feed of upbeat comments from U.S. officials and no signs of a final agreement looking likely.”

He said seeks had passed since the “phase one” deal was agreed in principle yet there was still no deal in place.

“Key for markets will thus be whether the Dec. 15 tariffs covering approximately $156 billion of largely technology imports are postponed and whether a deal can be signed ahead of that date, with press suggesting that these tariffs will be delayed to give negotiators more time.”

‘LEAST DIRTY’

In currency markets, the dollar dipped after its rally on Friday when U.S. manufacturing surveys beat forecasts, just as European Union numbers disappointed.

Against a basket of currencies, it last traded down 0.05% at 98.226, after gaining 0.3% last week.

“U.S. economic data outperformed, highlighting again the resilience of the economy and that while global growth has slowed, it remains the least dirty t-shirt in the laundry basket,” said Tapas Strickland, a director of economics and markets at National Australia Bank.

“For the EU data, the important takeaway was the ongoing decline in the manufacturing sector is now spreading to the larger services sector, a worrying sign for the global economy.”

European Central Bank President Christine Lagarde on Friday called on euro zone governments to strengthen domestic demand.

Federal Reserve Chair Jerome Powell speaks later on Monday and is expected to underline the steady outlook for rates given the better economic figures.

The euro was flat $1.1024 on Monday, having breached chart support at $1.1040, while the dollar edged up to 108.87 yen.

was 0.3% lower at $1,457.44 per ounce. [GOL/]

Oil prices rose. [O/R]

futures firmed 0.19% to $63.51, while rose 0.1% to $57.83 a barrel.



How to make the most of a zero-commission world


NEW YORK (Reuters) – How interested are people in trading stocks for free?

A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 3, 2019. REUTERS/Andrew Kelly

Very.

In early October, after TD Ameritrade announced it was switching to zero commissions from $6.95 on all trades, client call volume increased 20% and new client call volume shot up 40%, the company said.

But that does not mean that there is a whole new cadre of day traders swapping exchange-traded funds every hour, even as the likes of E-Trade, Fidelity and Schwab joined the fray to offer zero commissions.

At Schwab, trading volume actually decreased in October, according to the company.

“We see zero commissions as a way to provide access and lower friction to people who want to buy in a brokerage account or elsewhere. We don’t think people will trade actively,” said Rob Williams, vice president of financial planning at Charles Schwab and a certified financial planner.

As investors wade cautiously into this new world of free trading, here is how to make the most of it as well as what to avoid:

** Retirement accounts

Zero commissions will not make much difference in workplace 401(k) plans (or your college savings 529 account), which heavily favor target-date mutual funds that you typically set once and do not trade again until you cash out.

But you could change the way you deal with the existing balance in your rollover individual retirement account (IRA) or Roth IRA, and any new contributions you make, where clients lean more toward low-cost index ETFs.

If you are a once-a-year contributor, you might want to think about stretching that out – known as dollar-cost averaging – so you are not dependent on how the market is doing on any one particular day.

“I think this is a great opportunity for those folks to dollar-cost-average and invest in smaller increments and get involved in stocks that you might not have gotten involved in before,” said Josh Rowe-Heupler, general manager of investing for LendingTree.

You can also save money rebalancing, which you need to do if market forces sway your portfolio away from your long-term goals.

At the investment management firm Rebalance, clients are saving about $35 a pop for twice yearly rebalancing, said Mitch Tuchman, managing director and chief investment officer.

“The end of commission marks the end of a conflicted way of doing business that has been in place since the beginning of the stock market. We can now put a stake in the ground and say it’s dead,” Tuchman said.

** Investing small amounts

Before October, if you had $100 to save, your options were not good for investing because even a $4.95 transaction fee would eat significantly into your potential returns. You might be discouraged from doing positive things, like saving in your triple-tax-free Health Savings Account or putting just a little bit of money into a Roth IRA.

“Many times customers don’t realize that they leave their money in cash for a long time – longer than they think,” said Ram Subramaniam, president of Fidelity Brokerage Services, where cash in brokerage accounts earns 1.33% at the moment. “One of the first do’s is to make sure whatever cash you have works for you.”

** Emergency funds

Not all cash is meant to be invested, however.

“It’s very prudent to have emergency funds,” said Steve Quirk, vice president of trading and education at TD Ameritrade. But, that said, investors know how little interest they earn on cash. When they see the S&P 500 up more than 20% for the year, they want to participate in that.

“Now you can, at least in a portion,” Quirk said, because with ETFs you can get in and out in milliseconds for no cost.

As for those who worry about investors hooked on trading, Quirk draws the analogy with exercising: “If health clubs were suddenly free, are we nervous that people will overexercise? You just have to do it in a prudent manner.”

Follow us @ReutersMoney or here; Editing by Lauren Young and Jonathan Oatis



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EU Stimulus, World Manufacturing By Bloomberg


© Reuters. Charting the Global Economy: EU Stimulus, World Manufacturing

(Bloomberg) — Explore what’s moving the global economy in the new season of the Stephanomics podcast. Subscribe via Apple Podcast, Spotify (NYSE:) or Pocket Cast.

Europe’s top central banker is urging larger fiscal responses from governments to invigorate economies, while rising commodities prices and slight improvements in a global manufacturing index indicate demand is stabilizing.

Following are some of the top charts that appeared on the Bloomberg terminal and Bloomberg.com this week. The scope of this weekly series, grouped by region, is a graphical depiction of an evolving world economy. Chart selection is based on financial market and national economy relevance, shifts in demographics and geopolitical events.

American workers in the industries where wages are well above the national average are commanding the biggest bumps in pay, the latest jobs report showed.

Home equity has increased by almost 20 percentage points over the last decade through a combination of relatively low interest rates which allow for faster mortgage amortization and a robust increase in property prices.

Europe

Two Bank of England officials at Thursday’s policy meeting wanted an immediate reduction in interest rates to combat threats to growth from Brexit and a weaker global economy.

The European Commission’s latest forecasts, released on Thursday, show them all having next year what European Central Bank president Christine Lagarde described in her confirmation testimony as space for stimulus.

Exports from China in October fell less than expected, offering a tentative sign of stability in trade markets amid hopes of a interim trade deal between Washington and Beijing.

Hong Kong officials looking for a fiscal solution to a months-long impasse with protesters are doing it on the cheap. While Hong Kong spends almost half its budget on social welfare, health and education, its annual spending lags it peers.

Global

While JPMorgan Chase (NYSE:) & Co.’s global manufacturing index contracted for a sixth month in October, it inched closer toward positive territory as both output and orders firmed.

Commodities are enjoying a revival as optimism over a possible U.S.-China trade pact boosts prospects for demand, with gains in energy, base metals and crops.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



DP World reports lower quarterly global cargo volumes, Dubai down again By Reuters


© Reuters. Sultan Ahmed bin Sulayem, Chairman and CEO of DP World, speaks during a Reuters interview in Kigali,

DUBAI (Reuters) – Port operator DP World (DI:) reported on Tuesday a third quarter decline in cargo handled across its global portfolio as volumes fell in Dubai for a sixth consecutive quarter.

The operator said it handled 18 million twenty foot equivalent unit (TEU) containers in its ports in the three months to Sept. 30, down 1.6% on the same period a year ago.

It said a global trade row created a challenging environment. The United States and China have been locked in a trade row that has cast a shadow over global economic prospects.

At its flagship Jebel Ali port in Dubai, the Middle East’s largest trans-shipment hub, and the smaller Mina Rashid port volumes fell 1% to 3.6 million TEUs.

DP World Chairman Sultan Ahmed bin Sulayem said volumes at Jebel Ali had been stabilizing, adding: “We remain focused on profitable origin and destination cargo.”

Tensions in the Middle East have escalated in the wake of attacks on oil facilities in Saudi Arabia and tankers in Gulf waters, a key shipping artery for the global oil trade.

Global volumes were flat in the first nine months of the year, while those handled at Jebel Ali were down 5.5%.

(Official correction to include Mina Rashid in disclosed Dubai volumes, replaces paragraphs 4,5,6)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Fallout from Trump’s trade wars felt by economies around the world By Reuters



By Andrea Shalal and Heather Timmons

WASHINGTON (Reuters) – The collateral damage of the United States’ trade wars is being felt from the fjords of Iceland to the auto factories of Japan.

Central bank governors and finance ministers traded grim tales of suffering economies at the International Monetary Fund and World Bank fall meetings in Washington this week. Some also noted how far U.S. policy had shifted from the 1940s, when Washington co-founded the IMF.

At that time, “the world economy had been hammered for over a decade by high tariff barriers, depression and war,” prompting then-U.S. Treasury Secretary Henry Morgenthau to champion a global economic system, World Bank President David Malpass told attendees at a session this week.

The U.S. message then, Malpass said, was: “First, there’s no limit to prosperity. Second, broadly shared prosperity benefits everyone.”

As the IMF’s gathering of 189 member-nations drew to a close, the unintended negative impacts of the trade wars were becoming clear, IMF Managing Director Kristalina Georgieva said. “Everybody loses.”

The United States, the world’s largest importer, started a bitter tariff war with China, the world’s largest exporter, 15 months ago. U.S. President Donald Trump is also in the midst of renegotiating, and sometimes upending, trade relationships with many of Washington’s top trading partners.

The fallout will slow global growth in 2019 to 3.0%, the slowest pace in a decade, the IMF estimated this week.

This pain is not being shared equally. The United States remains the least exposed of the world’s 20 largest economies to a drop in exports in part because of its massive domestic consumer spending base. (Here’s a graphic that shows the impact of tariffs in the United States and around the world. https://tmsnrt.rs/2OZJQba)

EUROPE’S PAIN

The damage is being particularly felt in European countries which “rely on exports and are open to trade,” the European Union’s Economic and Financial Affairs Commissioner Pierre Moscovici said.

More than 40% of Germany’s GDP was derived from exports in 2018, the most of any major global economy. Uncertainty in the business community is widespread, German Finance Minister Olaf Scholz told reporters.

German trade group BGA recently revised down its growth forecast for German exports in 2019 to just 0.5%, from 1.5%. As a result, many companies are scaling back their investment plans, something that will have repercussions for years to come.

Scholz said concerns over Britain’s impending departure from the EU and the bloc’s trade dispute with the United States were clearly dampening global economic growth.

“The most important problem remains those factors that we cannot measure – specifically the reluctance to invest,” Scholz said.

The pain is being felt in countries that don’t rely on exports too, such as Iceland, which became the first developed economy to seek aid from the IMF after a 2008 banking collapse. Since then, it has rebuilt its economy in what’s been called a miraculous recovery. Now, that is threatened.

“We have become dependent on tourism,” explained Ásgeir Jónsson, the governor of Iceland’s central bank, with annual visitors growing five-fold to 2.5 million since the crisis. Foreign arrivals, however, have plummeted since the trade wars started, and are down 15.6% this summer from the year before.

Iceland, with a population of about 300,000, built foreign currency reserves on the back of the increase in visitors, he said, but those are dropping too.

Trade links between countries have led to a more peaceful world in recent decades, but recent experience shows “you can never take global trade for granted,” Jónsson said.

NO AMERICAN IMMUNITY

On Friday, Japan’s Cabinet Office, which helps coordinate government policy, downgraded its assessment of factory output in October.

The softness in production was largely due to car exports to the United States turning weaker, after growing steadily until the spring, a government official said at a briefing.

“The pick-up in global growth is being delayed,” Bank of Japan Governor Haruhiko Kuroda said. “Japan’s economy is seeing exports weaken significantly and that’s affecting factory output.”

The United States hasn’t been immune from the impact of the trade wars. American farmers have been particularly hurt by Chinese tariffs on U.S. agricultural products, prompting the Trump administration to give billions in aid to the farm belt.

Washington’s imposition of steel and aluminum tariffs and uncertainty about passage of a new North American free trade deal – the United States-Mexico-Canada Agreement – have also stalled local economic development.

EMERGING MARKETS DISENGAGE

The trade tensions are helping to spur a push among African nations to create a more self-reliant continent. “We must take it upon ourselves to grow trade among ourselves,” said Ukur Yatani Kanacho, Kenya’s acting cabinet secretary for treasury.

Abdoulaye Daouda Diallo, the finance minister of Senegal, told reporters the U.S.-China trade tensions would affect African nations in the energy sector and cut funds available on financial markets. The dispute underscored the importance of the African Continental Free Trade Agreement, he said.

Other emerging markets are also coming under pressure.

“Ukrainian exporters faced worsened conditions in global commodity markets,” which drove down steel prices, said Kateryna Rozhkova, the deputy governor of the country’s central bank.

Making matters worse, “the intensification of geopolitical conflicts led to rising oil and prices in the world,” she said.

Bahrain’s Finance Minister Sheikh Salman bin Khalifa Al Khalifa said the Gulf region was also affected by trade tensions and the resulting slowdown in investment, although geopolitical concerns – about Iran, for example – were another major factor.

“Trade tensions create uncertainty and nobody is insulated from uncertainty,” he told Reuters.

Peru cut its 2019 economic growth estimate to 3% in August, from 4.2%, citing trade factors. Mexico is edging closer to a recession that its officials say might be more difficult to reverse than during the last downturn more than a decade ago.

“The Great Recession basically caught everybody by surprise, but economies were willing to cooperate and work together to pull it out,” Mexican Finance Minister Arturo Herrera said. “This slowdown is taking nobody by surprise, but there is very little appetite for cooperation.”

(Graphic: Tariffs lead to global slowdown – https://graphics.reuters.com/USA-TRADE-SLOWDOWN/0100B2HH1SK/index.html)



Fallout from Trump’s trade wars felt by economies around the world


WASHINGTON (Reuters) – The collateral damage of the United States’ trade wars is being felt from the fjords of Iceland to the auto factories of Japan.

FILE PHOTO: Newly manufactured cars of the automobile maker Honda await export at port in Yokohama, south of Tokyo June 23, 2015. REUTERS/Toru Hanai/File Photo

Central bank governors and finance ministers traded grim tales of suffering economies at the International Monetary Fund and World Bank fall meetings in Washington this week. Some also noted how far U.S. policy had shifted from the 1940s, when Washington co-founded the IMF.

At that time, “the world economy had been hammered for over a decade by high tariff barriers, depression and war,” prompting then-U.S. Treasury Secretary Henry Morgenthau to champion a global economic system, World Bank President David Malpass told attendees at a session this week.

The U.S. message then, Malpass said, was: “First, there’s no limit to prosperity. Second, broadly shared prosperity benefits everyone.”

As the IMF’s gathering of 189 member-nations drew to a close, the unintended negative impacts of the trade wars were becoming clear, IMF Managing Director Kristalina Georgieva said. “Everybody loses.”

The United States, the world’s largest importer, started a bitter tariff war with China, the world’s largest exporter, 15 months ago. U.S. President Donald Trump is also in the midst of renegotiating, and sometimes upending, trade relationships with many of Washington’s top trading partners.

The fallout will slow global growth in 2019 to 3.0%, the slowest pace in a decade, the IMF estimated this week.

This pain is not being shared equally. The United States remains the least exposed of the world’s 20 largest economies to a drop in exports in part because of its massive domestic consumer spending base. (Here’s a graphic that shows the impact of tariffs in the United States and around the world. tmsnrt.rs/2OZJQba)

EUROPE’S PAIN

The damage is being particularly felt in European countries which “rely on exports and are open to trade,” the European Union’s Economic and Financial Affairs Commissioner Pierre Moscovici said.

More than 40% of Germany’s GDP was derived from exports in 2018, the most of any major global economy. Uncertainty in the business community is widespread, German Finance Minister Olaf Scholz told reporters.

German trade group BGA recently revised down its growth forecast for German exports in 2019 to just 0.5%, from 1.5%. As a result, many companies are scaling back their investment plans, something that will have repercussions for years to come.

Scholz said concerns over Britain’s impending departure from the EU and the bloc’s trade dispute with the United States were clearly dampening global economic growth.

“The most important problem remains those factors that we cannot measure – specifically the reluctance to invest,” Scholz said.

The pain is being felt in countries that don’t rely on exports too, such as Iceland, which became the first developed economy to seek aid from the IMF after a 2008 banking collapse. Since then, it has rebuilt its economy in what’s been called a miraculous recovery. Now, that is threatened.

“We have become dependent on tourism,” explained Ásgeir Jónsson, the governor of Iceland’s central bank, with annual visitors growing five-fold to 2.5 million since the crisis. Foreign arrivals, however, have plummeted since the trade wars started, and are down 15.6% this summer from the year before.

Iceland, with a population of about 300,000, built foreign currency reserves on the back of the increase in visitors, he said, but those are dropping too.

Trade links between countries have led to a more peaceful world in recent decades, but recent experience shows “you can never take global trade for granted,” Jónsson said.

NO AMERICAN IMMUNITY

On Friday, Japan’s Cabinet Office, which helps coordinate government policy, downgraded its assessment of factory output in October.

The softness in production was largely due to car exports to the United States turning weaker, after growing steadily until the spring, a government official said at a briefing.

“The pick-up in global growth is being delayed,” Bank of Japan Governor Haruhiko Kuroda said. “Japan’s economy is seeing exports weaken significantly and that’s affecting factory output.”

The United States hasn’t been immune from the impact of the trade wars. American farmers have been particularly hurt by Chinese tariffs on U.S. agricultural products, prompting the Trump administration to give billions in aid to the farm belt.

Washington’s imposition of steel and aluminum tariffs and uncertainty about passage of a new North American free trade deal – the United States-Mexico-Canada Agreement – have also stalled local economic development.

EMERGING MARKETS DISENGAGE

The trade tensions are helping to spur a push among African nations to create a more self-reliant continent. “We must take it upon ourselves to grow trade among ourselves,” said Ukur Yatani Kanacho, Kenya’s acting cabinet secretary for treasury.

Abdoulaye Daouda Diallo, the finance minister of Senegal, told reporters the U.S.-China trade tensions would affect African nations in the energy sector and cut funds available on financial markets. The dispute underscored the importance of the African Continental Free Trade Agreement, he said.

Other emerging markets are also coming under pressure.

“Ukrainian exporters faced worsened conditions in global commodity markets,” which drove down steel prices, said Kateryna Rozhkova, the deputy governor of the country’s central bank.

Making matters worse, “the intensification of geopolitical conflicts led to rising oil and natural gas prices in the world,” she said.

Bahrain’s Finance Minister Sheikh Salman bin Khalifa Al Khalifa said the Gulf region was also affected by trade tensions and the resulting slowdown in investment, although geopolitical concerns – about Iran, for example – were another major factor.

“Trade tensions create uncertainty and nobody is insulated from uncertainty,” he told Reuters.

World Bank President David Malpass responds to a question from a reporter during an opening press conference at the IMF and World Bank’s 2019 Annual Fall Meetings of finance ministers and bank governors, in Washington, U.S., October 17, 2019. REUTERS/Mike Theiler

Peru cut its 2019 economic growth estimate to 3% in August, from 4.2%, citing trade factors. Mexico is edging closer to a recession that its officials say might be more difficult to reverse than during the last downturn more than a decade ago.

“The Great Recession basically caught everybody by surprise, but economies were willing to cooperate and work together to pull it out,” Mexican Finance Minister Arturo Herrera said. “This slowdown is taking nobody by surprise, but there is very little appetite for cooperation.”

(Graphic: Tariffs lead to global slowdown – here)

Additional reporting by Leika Kihara, Christian Kraemer, Jan Strupczewski, Rodrigo Campos and David Lawder; Editing by Paul Simao



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World Bank says 2019 Asia-Pacific growth to slow to 5.8% on trade tensions By Reuters



BANGKOK (Reuters) – Asia Pacific growth is expected to slow to 5.8% in 2019, down from 6.3% in 2018, due to uncertainty around the ongoing U.S.-China trade tensions, a World Bank report said on Thursday.

The report highlights the weakening global demand and heightened uncertainty that led to a decline in exports and investment growth, and points out that increasing trade tensions pose a long-term threat to regional growth.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



World Bank raises Poland’s 2019 GDP growth forecast to 4.3% By Reuters



WARSAW (Reuters) – The World Bank on Wednesday raised its forecast for Poland’s GDP growth in 2019 to 4.3% from the 4.0% expected in April, citing rising domestic consumption and a rebound in investment.

The bank has maintained its growth projections for Poland’s economy in 2020 and 2021 at 3.6% and 3.3%, respectively.

“While Poland’s growth is one of the fastest in Europe and Central Asia, overall growth dynamics in the region are being adversely affected by the downturn in Turkey and Russia,” the bank said in a statement.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.