LONDON (Reuters) – Prime Minister Boris Johnson on Thursday denied lying to Queen Elizabeth over the reasons for suspending the British parliament after a court ruled his decision was unlawful and opponents called for lawmakers to be recalled to discuss Brexit.
Investing.com – The pound rose on Friday on a newspaper report that the U.K. government is contemplating some type of regulatory divergence between Northern Ireland the U.K. in an attempt to secure a Brexit deal.
Investing.com – The U.S. dollar retreated across the board on Thursday after a report suggesting a trade truce between the U.S. and China lent wings to risk assets of all stripes, although it pared losses as the White House denied the report.
(Bloomberg) — Russia’s ruble is once again the year’s best performer in emerging-markets and benchmark bond yields have dropped to levels not seen since before the annexation of Crimea as a dovish central bank and renewed risk appetite help extend a rally.
“Governments with fiscal space should act in an effective and timely manner,” Draghi said, only two days after Germany, the euro zone’s largest economy, signaled it’s targeting another balanced federal budget next year. The euro zone economy is facing an extended slowdown and inflation is likely to stay clearly below the European Central Bank’s medium-term target, Draghi said.
(Bloomberg) — China said it is encouraging companies to buy U.S. farm products including soybeans and pork, and will exclude those commodities from additional tariffs, in the latest move to ease tensions before the two sides resume trade talks.
(Bloomberg) — Senior euro-area officials joined European Central Bank President Mario Draghi’s call for actions to boost growth, amid a brewing debate over the need for more fiscal stimulus to revitalize the region’s flagging economy.
Bond yields across the euro area have dropped into negative territory this year amid expectations for more stimulus from the ECB in the face of growing geopolitical risks from Brexit to the U.S.-China trade war. The euro, meanwhile, touched its lowest level in over two years earlier this month.
While Fed officials such as Chairman Jerome Powell repeat the mantra that the economy is in “a good place,” the risks to the outlook stemming from slower global growth and trade wars remain sufficient to justify rate cuts. As Powell explained again last week, the Fed believes that its dovish pivot toward a lower path for policy rates help explains the economy’s resilience in the face of that uncertainty.