- China has cut the US dollar weighting in a key yuan exchange rate index for only the second time since 2015
- The change will help reduce China’s reliance on the American currency and promote greater international use of the yuan in financial transactions Source South China Morning Post
Shrinking exports held back German economic activity in the fourth quarter of last year, detailed data showed on Tuesday, confirming that Europe’s largest economy was stagnating even before the coronavirus outbreak began. Source Al Jazeera
In the end, the Council has moved closer to the most austere positions of the core countries, proposing a significant cut with respect to the previous budget (1.16% of GDP in 2014-20) and in comparison to the Commission’s proposals (1.11% of GDP) and of Parliament (1.3% of GDP). In addition, it reduces funding for the most significant items so far: cohesion (-12%) and agriculture (-14%). Source The Corner
uro zone money markets started to fully price in a December European Central Bank interest rate cut on Wednesday, as the spread of the coronavirus outside China prompted traders to ramp up expectations for more stimulus. Source Reuters
