Jul 15 2020 0
The followings are the most important news of the day that no forex trader should miss.
Already done
President Donald Trump said he issued an order to end Hong Kong's special position with the United States and signed laws to sanction Chinese officials responsible for suppressing political dissent in Hong Kong. - this is the latest escalation of tension between the two largest economies in the world. Speaking at Rose Garden, Mr. Trump used the event to repeat protests against his Democratic opponent - Joe Biden - described as being close to China during his vice presidency. .
Mr. Trump has spent weeks blaming Beijing for the coronavirus pandemic and criticizing its conduct with Hong Kong. However, the president faced some criticism for his reaction to the coronavirus, when again, cases increased again as businesses reopened. Bipartisan legislation was introduced in response to the Chinese government's new national security law for the former British colony, which critics thought was aimed at stifling political protests and shutting down different opinions.
A potential vaccine
Federal researchers said Moderna's Covid-19 treatment vaccine produced antibodies to coronavirus in all patients tested during the initial safety trial. The level of antibody produced in the test subjects was equivalent to more than half the antibody levels in patients who were infected and then recovered, according to research results published Tuesday by the New England Journal of Medicine. The Moderna vaccine is one of the most advanced along with Covid-19. Although stimulating neutralizing antibody production does not prove that the vaccine will be effective, it has been considered an important first step in testing.
Bullish market
Asian stocks are poised to go up after US stocks gained and coronavirus treatment is making positive progress. The dollar fell. An ETF tracking the S&P 500 index gained value after the market closed because Moderna's Covid-19 treatment vaccine showed promise. The S&P 500 futures contract advanced at the opening in Asia, based on the previous increase in US stocks in an unstable trading session as investors weighed earnings and earnings reports. Economic impact of the increase in viral infections. The futures market in Japan, Hong Kong and Australia has increased. Treasury bonds closed with little change. Bank of Japan is expected to retain its policy settings on Wednesday, as the virus-infected economies have gone through their worst times, with a focus on being able to focus on BOJ's quarterly economic forecasts.
Tax obstacle
Concerns about brain drain in Hong Kong are rising after China switched to taxing global income on its citizens, undermining the financial center's appeal to thousands of bank employees. goods and other intellectual workers from the mainland. Faced with rates as high as 45% - up from about 15% previously, Chinese professionals in Hong Kong are considering returning home to avoid being squeezed by both new taxes and living expenses. towering in the old British colony. While it is still early to assess how many people will eventually leave, careers at all levels now have a reason to leave the city that was not long ago considered one of The world's most attractive places to build a career.
UK shut down Huawei
Liu Xiaoming, China's envoy to the United Kingdom, called the decision to ban Huawei Technologies from Britain's next-generation mobile networks "disappointing and false", saying that this would pose "suspicion." whether Britain can provide an open, fair and non-discriminatory business environment for companies from other countries. "
Under the blueprint agreed by Prime Minister Boris Johnson, telegrams will not be able to add any new components from Huawei to their 5G networks after December 31 this year. All devices manufactured by the Shenzhen-based company that will be installed will need to be removed from the 5G infrastructure by 2027. This announcement is a governmental position reversal. Mr. Johnson set out less than 6 months ago, and it represents a diplomatic victory for President Donald Trump. Now, other countries can follow this trend.
