Mixed US data, more trade talk rhetoric, Brexit drives pound down
Wednesday 17th July 2019 President Trump has been taking to the Twittersphere again to warn of increased tariffs against China. But, as NAB’s Tapas Strickland explains, China’s commerce minister is also turning up the heat, saying his country is in no hurry to reach a deal. There’s similar bravado in Britain where a leading Tory remainer has advocated precipitating a general election to avoid a no-deal Brexit, whilst Boris Johnson refuses to rule out proroguing parliament to meet the October 31 deadline. Aside from politics though, data has been generally strong. US retail sales were strong and UK wages grew the most in a decade. But its not all good news, and Jerome Powell and other Fed speakers have reinforced the expectation for a July rate cut, with half a percent still on the table.