The tariffs are coming! $34 billion of Tariffs on Chinese goods are scheduled to take effect at 12:01 am (EST) in Washington. Beijing policy makers are prepared for retaliation on U.S. goods ranging from soybeans to pork.
The tariffs are already having an effect on the market, Chinese companies are reselling U.S. soybeans, Chinese companies are expected to cancel most of the remaining soybeans they have committed to buy from the U.S., at the same time cargo ships are racing to reach China before the tariffs take effect. Some American businesses are bracing for impact. U.S. manufacturers and business groups have said the tariffs could increase their costs and lead to higher prices for consumers
What Happened This Week?
Najib Razak, the former prime minister of Malaysia was arrest on Tuesday in connection with an investigation into the disappearance of billions of dollars from state fund 1MDB. Najib has denied any wrongdoing, and on Wednesday, pleaded not guilty to the charges. He was granted bail of 1 million ringgit and ordered to surrender his passports. He faces three counts of criminal breach of trust and one charge under the anti-corruption act. If found guilty, he could be jailed for up to 20 years and fined. The former prime minister is seeking trial for all charges.
What will happen next?
By charging Najib, the Mahathir administration is keeping an electoral promise to take action against the former leader. It also sends a strong message to Malaysians and the international community that the administration is serious about cleaning out the mess left by the Najib’s government.
For Najib, he will be facing many trials ahead, as more charges are expected relating to the 1MDB case. Najib’s family member might also face charges as they are alleged to be direct beneficiaries of the stolen funds.
►The minutes of the Federal Open Market Committee’s June 12-13 gather was released on Thursday. TheMinute reaffirmed their commitment to gradually raising the benchmark lending rate during the rising risks from trade battles and emerging market turmoil.
► German Chancellor Angela Merkel won the support of her Social Democratic coalition partner for a deal on migration policy.
►Today, Theresa May’s top team of ministers is due to finalise the white paper, spelling out the U.K. plans for the kind of future it wants with the European Union after Brexit. However, a group of seven pro-Brexit ministers are privately pushing her to tear up her plans.
►NATO summit will take place next week from 11 – 12 July, in Brussels. This is an opportunity for the Alliance to focus on topics surrounding defence and security. President Donald Trump is likely to criticise Germany, whose military spending only accounted for 1.2 percent of GDP in 2017.
►Bank of Canada is set to release their interest rate decision on July 11, along with the Monetary Policy Report.
►Inflation figures for the U.S. are set to release on 12 July.
This information is subject to change without notice. BlackBull Markets strives to provide the most accurate information available, but cannot guarantee that any of these events will occur nor that the outcome will be as stated. This information is to be used for educational purposes only and further research should be done before trading.
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