Connect with us

World

Mnuchin says phase two of China trade deal may come in stages: ‘We’ll see’

Published

on

Secretary of the Treasury Steven Mnuchin answers questions from the press after an interview on CNBC on the North Lawn of the White House in Washington, September 12, 2019. REUTERS/Sarah Silbiger.

Sarah Silbiger | Reuters

The next phase of a trade deal between the U.S. and China could come in stages and is yet to be determined, according to U.S. Treasury Secretary Steven Mnuchin.

Washington and Beijing announced on Friday that an agreement on phase one had been reached, pending legal procedures, an accord Mnuchin called “historic.”

Phase one includes agreements on technology transfer, intellectual property, agricultural purchases, financial services access and currency conduct.

“We are going to go into a very short period of time of having the translation scrubbed, the deal will be signed in early January and then we will start on phase two,” Mnuchin told CNBC’s Hadley Gamble at the Doha Forum on Saturday.

“Phase two may be 2a, 2b, 2c, we’ll see, but this is unto itself a huge accomplishment for the president,” he added.

President Donald Trump said Friday that the U.S. would begin negotiations on the next phase of the trade deal “immediately, rather than waiting until after the 2020 Election.”

The first phase will see the U.S. delay additional 15% tariffs on $160 billion worth of Chinese imports and to refrain from imposing new duties for as long as negotiations continue amicably, while Beijing has agreed to significantly increase American agricultural purchases.

In tweets, Trump said the White House would leave 25% tariffs on $250 billion in imports in place while cutting existing duties on another $120 billion in products to 7.5%.

Global markets rallied on Friday in reaction to the news, having been largely beholden to the bruising trade war between the world’s two-largest economies over the past 18 months.

Source link

World

Treasury Secretary Mnuchin speaks at Davos

Published

on

[The stream is slated to start at 4:30 a.m. ET. Please refresh the page if you do not see a player above at that time.]

CNBC’s Geoff Cutmore speaks with top finance players and policymakers on “The Future of Financial Markets” at the World Economic Forum in Davos on Wednesday morning.

The CNBC anchor is joined by U.S. Treasury Secretary Steven Mnuchin, U.K. Finance Minister Sajid Javid, UBS Chairman Axel Weber and Kristalina Georgieva, the IMF managing director.

The five-day gathering in Davos is used by business leaders and politicians to meet and discuss some of the most pressing issues worldwide. This year, the meeting takes place at a time of heightened geopolitical tensions, trade disputes and further calls for action against climate change.

Subscribe to CNBC on YouTube.

Source link

Continue Reading

World

Hopes for fiscal stimulus driving ‘optimism’ in Davos

Published

on

The potential for governments to deploy fiscal stimulus policies in 2020 is creating greater optimism at this year’s World Economic Forum in Davos than a year ago, according to Barclays CEO Jes Staley.

With the European Central Bank (ECB) cutting interest rates to a record low -0.5% last year, new ECB President Christine Lagarde has joined her predecessor Mario Draghi’s calls for governments with fiscal headroom, such as Germany and the Netherlands, to start fiscal spending programs in order to boost the ailing euro zone economy.

The U.S. Federal Reserve cut rates three times in 2019 as central banks around the world shifted toward more accommodative monetary policies.

“The U.S. is taking that and driving a fiscal stimulus policy, and I think you will start to see other countries like the U.K. begin to do that, and that’s providing a certain floor to the economy which is lending itself to more optimism in Davos this year than last year,” Staley told CNBC on Wednesday.

With markets now beginning to price in a cut by the Bank of England this year, Staley predicted that the British government will look to embark on a broad fiscal spending program to invest in regional infrastructure, since the impact of looser monetary policy on the global economy is diminishing as rates worldwide move closer to negative.

Jes Staley, chief executive officer of Barclays Plc, gestures as he speaks during a panel session on the opening day of the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 23, 2018.

Jason Alden | Bloomberg | Getty Images

He suggested that the ECB and other central banks in Europe should begin looking at scaling back negative rates, which place a squeeze on the profitability of banks by effectively charging them for deposits placed with the central bank.

“There was a financial crisis of great proportion 10 years ago, the banks had a lot to do with it, and I think the central banks are more focused on stability in the economies right now than the banks,” Staley told CNBC’s Geoff Cutmore and Steve Sedgwick.

“They should start thinking now about the profitability of banks, much like you see in the U.S. If you dropped the European banking industry into the U.S. interest rate environment, you’d see quite an uptick in profitability.”

This sentiment was echoed by ING CEO Ralph Hamers, who suggested that as a politician rather than a central banker, Lagarde might be able to convince European governments to open the fiscal taps.

“There is absolutely no impact of further easing any more, we don’t see that – actually it is detrimental. It is detrimental to the confidence of the consumers, it is detrimental to the banks’ profits that actually have to support economic growth, so now the pressure is going to have to go back on the politicians for reform and fiscal easing – it has got to happen,” Hamers told CNBC.

He highlighted that large scale infrastructure projects and the transition toward green energy are not only necessary financing requirements for governments, but also a “massive opportunity” to develop new technology and invest in renewables.

Source link

Continue Reading

World

China ride-hailing giant Didi is looking to enter Russia

Published

on

Chinese ride-hailing giant Didi is looking to enter the Russian market, according to the CEO of the country’s sovereign wealth fund which is one of the investors in the firm.

The Russian Direct Investment Fund (RDIF) is an investor in Didi. RDIF’s CEO Kirill Dmitriev told CNBC on Wednesday that Didi is now looking to enter Russia.

“Didi is thinking about entering the Russian market and we are looking at the Russian market with them,” Dmitriev said.

Didi was not immediately available for comment when contacted by CNBC.

The company has been on an international expansion drive over the past couple of years and operates in Japan, Australia and Latin America.

An entry into the Russian market would pit Didi against Yandex Taxi, a joint venture between Russian internet giant Yandex and Uber.

Source link

Continue Reading

Trending