Polls today to elect a new president among those closely watching is china and its relationship with the u. S. And perhaps with the world has changed significantly over the past 3 and a half years from its trade war with the u. S. To the dispute over who way and the face off economic Hub Hong Kong chinas export oriented economy has faced Turbulent Times now it wants a new direction the fate of which could depend heavily on who sits in the white house. Across the west chinas economic model is coming in for closer inspection. The long held notion that free trade would bring democratic reform and openness to Chinese Society is now largely perceived as fiction. Instead as chinas economy has strengthened so has beijings resolve to go its own way made evident with recent crackdowns and change on and hong kong. What happens in hong kong and you. Have remarkably little to economy consequences for the chinese Chinese Government at the school now its not just the u. S. Thats mulling a rebalance
Space the Uns Highest Court rules against 4 arab countries and fears of a major flare up between armenia and azerbaijan as fighting intensifies over a disputed region. Back into the Program China is feeling the pressure on 2 fronts from the u. S. And from the United Kingdom just hours ago President Donald Trump signed an executive order to hold beijing accountable for a new National Security lowered imposed on the territory as part of the new legislation the president s canceled all special trade and economic privileges that whole kong enjoys with the United States and banks that deal with some the chinese officials also face sanctions. The hong kong or tanami act which i signed this afternoon passed unanimously through congress this law gives my administration powerful new tools to hold responsible the individuals and the entities involved in extinguishing hong kongs freedom weve all watch what happened not a good situation their freedoms been taken away their rights have been taken a
Is going on in terms of economic stimulus. European shares, slipping with u. S. Futures, the dollar snapping a fiveday losing streak. Treasuries edging higher with most european bonds. A full market round up shortly. Lets get to the bloomberg first word news with leighann gerrans. Leighann the u. K. Will pump 3 billion pounds into environmental projects as part of its recovery plan. The investment will be formally announced tomorrow when gives anr sunak update on economic plans. Hes under pressure to introduce a meaningful package after the prime ministers speech last week failed to impress many economists. Emmanuel macron has reshuffled his government. Bruno le maire stays as finance minister. Improve labor affairs, hes moving elizabeth. Orne and ha appended thes National Security legislation imposed on the city last week. Her comments come hours after the government asserted broad new police powers, including warrantless searches, online surveillance, and property seizure. Im glad to
Messages about covert 19 and covering up a crisis. And questioning the president s story puts a fact check warning on tweets from donald trump. And joining with sports including a Pivotal Moment in the race for the german football tight so it is by meaning voters who dont mean one bell in an empty stadium to make 7 points clear at the top of the book to sleep. Ok were going to begin in hong kong where more than 200 protesters have been arrested after a standoff with police in the heart of the city. Police used pepper spray to disperse crowds rallying against a bill that could see people jailed for mocking chinas National Anthem but theyre also demonstrating against a security law proposed by beijing activists insist its going to mean the end of hong kongs freedom and rights but probation politicians say its necessary to defend against what they call home grown terrorism. I think people need to recognize that our separate systems is based on our ability to National Sovereignty security
United states and weak business in fixed investment. I sit at the time we should do modest limited adjustment to the fed funds rate. The other thing i was worried about is the curve was inverted and i felt it would be much better if we had an upwardly sloping curve. To me, the curve is a symptom that maybe our adjustments were about right it was not intended to solve these issues but intended to adjust policy in light of these issues. I think the curve being upwardly sloping tells me we are in the right place. Want to move on to the consumer because the fed is putting so much impact on the consumer. Beenl sales have decelerating. A november number was half of what the Consensus Forecast was. Our Bloomberg Economics team expected holiday sales to come in at a gain of 3. 4 , the second weakest of the cycle. What if your main engine of growth is starting to run out of gas . That weakbeen worried Business Investment and weak manufacturing would seep into other parts of the economy. We have