China: We're trying to save the world from the United States

Daily Analysis - 25/09/2018

China preparing to grow its financial sector despite trade tensions

China is pushing forward by planning an economic improvement, despite the weight of a slowing economy and growing tensions with one of the most powerful economic powers in the world – the US.

Thursday at a World Economic Forum conference in Tianjin, China Premier Li Keqiang said to a group of business leaders "Our goal going forward is to further open up the financial services sector," according to China's Ministry of Foreign Affairs.

"Just as we have removed foreign ownership caps in the banking sector, we plan to take similar steps in the insurance and securities sectors in the next few years and phase in full-license, full-ownership operations in an orderly way,” Li said and added ”I hope in three years' time, there will be a number of foreign ventures qualified for full-license, full-ownership operation in the financial sector,” China has taken many actions to improve overseas participation in domestic markets and financial businesses.

Brexit is going in the wrong direction

Brexit discussions with the European Union are heading in the wrong direction and there is thinking that the U.K. could be going for a quick election.

The ruling Conservatives and the opposition Labour party seem to be thinking of a quick election as early as November. Especially in light of May's destructive meeting with her EU counterparts in Salzburg last week, at which they seemed to reject her and her Brexit proposals.

With the embarrassing refusal of her 'Chequers plan' that was meant to keep the U.K. closely aligned to the EU, the prime minister is seen as weak outside as well as at home. A report by The Sunday Times that two senior aides inside May's Downing Street team had replied to her "summit humiliation" last week by proposing that an immediate general election in November could improve the situation and save both her administration and her job.

The popular newspaper stated that one unnamed senior aide told to another Tory strategist: "What are you doing in November? Because I believe we are going to need an election." For its part, Downing Street has dismissed the statements as "categorically false."

US, Iran conflict comes to UN

While the popular commodity oil, is still going higher, the United Nations this week could give the next catalyst for prices, Both Iranian President Hassan Rouhani and President Donald Trump are speaking about U.S. penalties on Iran.

On Tuesday Rouhani and the US President Trump arrive individually at the UN General Assembly in New York against the backdrop of already rising oil prices. Trump will talk on Tuesday morning and also chairs the UN Security Council Wednesday, where he is anticipated to further talk about Iran.

Rouhani told NBC News that he has no intentions to meet with Trump. Rouhani said in an exclusive interview with "NBC Nightly News" There is no such program for a meeting."

EUR/USD bounces

After a fast test on the daily support at about of 1.1728, The Popular pair EUR/USD arranged to generate some momentum trying to test the session tops at the 1.1758 level. EURUSD is looking to continue to add profit to yesterday’s small increase after failing to go further north to the important 1.1800 the figure.

President Mario Draghi at his speech provided a hawkish message. The European Parliament gave the bull the momentum they needed to go to the 1.1800 and above, although the move lacked follow through.

The US-China trade jitters seem to be completely priced in by market members, removing its relevance as a market mover, particularly for the greenback.