Donald Trump calms fears about imposing 100% tariffs on China, saying that wouldn’t be sustainable. France’s credit rating is downgraded. Gold falls from its highs. And New Zealand’s inflation rate may top 3%.
In our Deep-Dive interview, ANZ’s Head of Geopolitical Risk, Cameron Mitchell describes a new era for geopolitics and trade.
5 things to know in 5 minutes:
The focus remains on Donald Trump’s rhetoric around a trade deal with China. He eased some of those fears over the weekend, saying a new 100% tariff on China would not be sustainable. ANZ Group Chief Economist Richard Yetsenga looks for the signal amid the noise.
Another thing to watch is nervousness about regional bank stocks in the US, and their connections to private equity funds. Richard assesses the risks.
France’s credit rating was cut one notch to A+ from AA- by Standard and Poor’s over the weekend. ANZ Head of FX Research Mahjabeen Zaman looks at how the euro is travelling.
Demand for gold is coming from a range of sources, including central banks, says Mahjabeen.
New Zealand will get an inflation reading later today, with the potential for an annual rate for the September quarter rising to 3.1%, says ANZ Senior Economist Miles Workman.
Cheers,
Bernard.
PS: Coming up tomorrow is part two of our deep-dive interview with Cameron Mitchell about this new trade era, and whether traders and businesses think it will last.
