Janet Mui: weekly economic update 29 November

  • President Trump signed the Hong Kong Human Rights and Democracy Act this week. In addition to calling for more democratic government in Hong Kong, the bill requires the US to annually review its trade relationship with Hong Kong.
  • There is some concern in markets this could derail US-China trade talks.
  • However, so far, China has not retaliated in any significant way. The bill had unanimous support from both the US House and Senate, putting pressure on the President to sign it. This will not have come as a surprise to the Chinese.  
  • On balance, we still expect China and the US to announce trade deal soon.
  • US data released this week exceeded economists’ forecasts. Consumer spending, which grew at an annualised rate of 2.9% in the third quarter, remains a bright spot.
  • We think the Fed remains on hold for now.

This article is issued by Cazenove Capital which is part of the Schroder Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested. This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements. All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Contact Cazenove Capital

To discuss your DFM requirements, or to find out more about our services and how we can help you, please contact:

Nick Georgiadis

Nick Georgiadis

Head of DFM Team
Simon Cooper

Simon Cooper

Business Development Director