Week 47

21 November – 25 November

 

21 November

 

After Brexit and Donald Trump, prepare for the return of the eurozone crisis. If Matteo Renzi, Italian prime minister, loses his constitutional referendum on December 4, I would expect a sequence of events that would raise questions of Italy’s participation in the eurozone.

 

Theresa May, the British prime minister, has earmarked £2bn for science and innovation, and pledged further tax cuts for companies as part of a grand bargain that requires business to build a “stronger, fairer country”.

 

Oil prices were the big movers in Asian trade on Monday and eyeing their first back-to-back gains in a month amid hopes major producers would agree to output cuts and help rein in oversupply.

 

Investors, central bankers and policymakers are once again talking about investing in infrastructure as a way to stimulate flagging economies around the world.

 

22 November

 

Mongolia has received a fresh debt downgrade from Fitch, which has taken its assessment of the country’s creditworthiness one notch deeper below the investment grade ranks, to B-, from B.

 

European government bonds are rallying this morning, providing pause in a sustained sell-off driven by prospects of rising US inflation and insurgent populist movements in Europe.

 

Donald Trump plans on his first day in office to tell Pacific Rim signatories to the Trans-Pacific Partnership that the US will pull out of the trade deal, a signature policy of Barack Obama. In a video outlining steps he would take on January 20, the US president-elect said he would walk away from the 12-nation deal that took years to negotiate. Critics have argued the withdrawal would pave the way for China to increase its influence in the Asia-Pacific region. Here is a comprehensive look at what Mr Trump plans in his first 100 days and what he does — and does not — need Congress to approve.

 

Toyota and Mazda — the two Japanese automotive groups most sceptical about electric vehicle technology — have finally revealed plans to mass-produce battery-powered cars. They are late to a game that most of the world’s carmakers — including Volkswagen, Daimler, General Motors and Jaguar Land Rover are already playing, as they confront the rise of US electric vehicle start-up Tesla.

 

23 November

 

Sweden’s central bank is showing no intention of ending its policy of record low interest rates (far from it), but it has once again warned that the government needs to take action to offset the risks its monetary policy is creating.

 

A closely watched indicator of eurozone economic activity hit its highest level this year in November, indicating that Donald Trump’s surprise victory in the US election and the threat of a crisis sparked by Brexit have yet to dent the region’s recovery.

 

Investors love a story, and Wall Street has seized on a new one with the election of Donald Trump as the 45th US president.

 

Dr Pepper Snapple, the producer of sugary sodas, is pushing into the healthier parts of the beverages market after agreeing to buy antioxidant infused drinks maker Bai Brands for $1.7bn in cash.

 

24 November

 

More than six long years have elapsed since Greece, staggering under a heavy weight of sovereign debt, was forced to turn to its fellow eurozone governments and the International Monetary Fund for a bailout.

 

Singapore’s economy performed better than first thought during the September quarter, revisions to the data have shown.

 

Two partners at Paulson & Co’s London office have left this month as the shrinking New York-based hedge fund continues to downsize.

 

The size of mortgages that are eligible for government backing will increase in 2017 for the first time since 2006, as home prices in the US have recovered to levels last seen before the 2008 financial crisis.

 

25 November

 

The EU referendum result had little impact on business investment in the UK in the third quarter, according to official data, but the Office for National Statistics suggested most of those investment decisions would have been taken before the Brexit referendum in June.

 

Don’t count all your chickens just yet, but there is indeed some encouraging news for policymakers after the latest round of data showed headline consumer prices rose in Japan for the first time in eight months.

 

Ctrip International has agreed to pay £1.4bn ($1.7bn) for Skyscanner, the airfare comparison website, in a move that will help the Chinese online travel group better target the country’s booming outbound tourism industry.

 

As the biggest holiday shopping season of the year gets under way, stores big and small are braced for a nerve-racking couple of weeks. Some 137.4m people, or 59 per cent of Americans, are planning to hit the shops over Thanksgiving weekend, which stretches from Thursday to Sunday, the National Retail Federation estimates. That is up from 135.8m last year.