Geo-political news
Chinese Policymakers – Chinese policy makers have implemented several measures in an attempt to soften the huge blow that the Chinese economy has suffered recently, following the outbreak of the coronavirus. Optimism that China had contained or at least controlled the outbreak following data that suggested confirmed cases were down to 349 on Wednesday in comparison to 1693 the previous day saw markets rally mid-week. However, growing concerns over the economic impacts that are continuing to filter through, affecting both Asian economies and global markets, have led Chinese officials to implement a raft of policies in an attempt to restore investor confidence and counter the negative economic impacts. The policies include the cutting of China’s benchmark lending rate in order to lower financing costs for businesses as well as announcing that small firms will be exempt from covering payments such as work injury insurance and pensions until June, while larger firms regular payments will be halved until April, in an attempt to re stimulate growth for the second quarter.
Brexit negotiations – The next stage of the UK’s departure from the European Union is not going as smoothly as planned, as the negotiations surround trade and immigration policies continue. Luxembourg’s Prime Minister, Xavier Bettel, said “Britain must stick to the level playing field commitments it made in a political declaration that accompanied the legal Brexit treaty”. This comes as the UK have announced their plans for immigration, stating that a points system will be adopted whereby the flow of “low-skilled” workers will be reduced from the EU. EU Trade Commissioner, Phil Hogan, stated governments need to do more in order to make companies aware of the changes they may now face following this policy announcement including labour shortages.
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