Global News
Phase One Complete – The pressure was mounting on trade officials at the beginning of the week as a new round of US tariffs on China was closing in. While there had been signs of progress a lack of optimism surrounding how far off a “phase one” deal was from completion was evident. China’s exports unexpectedly dropped last month, with the total to the US down 23% from a year ago. However, Thursday night saw a so-called “phase one” deal signed off by President Donald Trump and the tariffs set to start on December 15th were revoked. The deal offered to President Trump included a promise that China would buy more agricultural goods. The news of the deal sent global stocks to record highs, while bond yields rose.
UK Election – The big news was the UK Election. The campaigns remained centred around two issues including Brexit and the National Health Services. Friday provided clarity for those within the UK, as results revealed that Boris Johnson’s Conservatives had won a decisive victory over Jeremey Corbyn’s Labour party. The Conservatives now hold 364 seats while Labour only holds 202. The victory clears the way for the Tory leader to take Britain out of the European Union at the end of next month. On the back of the news, the pound rallied against the dollar since 2017, reaching (£1/$1.34). Global equity markets rallied as risk-on appetite increased.
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