US widens tariffs on EU imports in Airbus, Boeing fight

The Trump administration imposed tariffs on additional products from the European Union as part of a long-running dispute over subsidies to aircraft makers Airbus SE and Boeing Co. In November, the EU instituted duties on some US$4bn in goods from the US after gaining approval from the World Trade Organization. A year earlier, the US sanctioned about US$7.5bn in imports from the EU including French wine and Scotch whisky.

US jobless claims post surprise drop, shadowed by virus risks

US claims for unemployment benefits unexpectedly fell to a one-month low, though the recent increases in coronavirus cases and business closures threaten to keep layoffs elevated through early 2021. Initial jobless claims in regular state programs declined by 19,000 to 787,000 in the week ended Dec. 26, according to a Labor Department report. The figures are often volatile around holidays and last week included Christmas. Without adjustments, claims dropped by 31,736.

Johnson says UK can use tax to drive investment outside EU

Leaving the European Union (EU) is an opportunity for the UK to use taxes and subsidies to encourage companies to step up spending, Prime Minister Boris Johnson said. In addition to regulatory change, “you can use tax systems and subsidies to drive investment,” he said. Despite a raft of new rules for trading with the EU, Brexit is still a boon for exporters, Johnson said. “There is some bureaucracy and we’re trying to remove it,” Johnson said when asked about the red tape that took effect on Jan. 1. “We have a massive opportunity to expand our horizons, and to think globally, and to think big.”

Italy gives UK finance firms Brexit grace period until June 30

Italy is giving UK finance firms a six-month post-Brexit grace period in which they can await authorization to do business in the country as non-European Union companies, the Italian market regulator said. The extra time applies to financial intermediaries that applied before the end of 2020 for permission to keep operating in Italy, Consob said. “British banks and investment firms may carry on their activities until such time as the authorization is either granted or refused by the Italian competent authorities, in any case no later than 30 June 2021,” the market regulator said.

India’s trade deficit widens in December as imports increase

India’s trade deficit last month increased 26% from a year earlier as imports rose. The deficit for Asia’s third-largest economy widened to US$15.7bn from US$12.5bn in December 2019 after imports climbed about 7% and exports fell less than 1%, the government said in a statement, citing preliminary data.

China sees ‘new window of hope’ in ties with US in 2021

China and the US can open a “new window of hope” in bilateral ties in the new year, Foreign Minister Wang Yi said, urging Washington to resolve disputes through dialogue. “Our US policy will maintain continuity and stability and we are willing to develop China-US relations in a coordinated, cooperative and stable manner with the American side,” Wang said.

OPEC+ warns of risk to oil recovery as group plots next move

OPEC warned of risks to the oil market from the resurgent pandemic, a day before the group and its allies meet to consider another increase in production. Brent crude for March settlement fell US$0.04 to US$51.76 per barrel.

Source: Affin Hwang Research - 4 Jan 2021