Economy

US-China Relations
China extends tariff pause on the US until after the New Year

China is postponing an increase in tariffs on the US for another two months—until after the New Year—according to the country’s transport authority. The pause applies to a tariff hike to 24 percent, as well as port fees for vessels linked to the US, reports Reuters.

According to the authority, the decision follows an agreement reached between Donald Trump and Xi Jinping during their summit in Washington in September.

Meanwhile, Beijing notes that the Trump administration plans to impose tariffs under a different legal provision, following a US Supreme Court ruling that invalidated the previous tariffs. "China will closely monitor the US’s upcoming measures and, if necessary, adjust its own countermeasures," the authority writes. 

The ECB vs. Inflation
EU Ministers Begin the Hunt for the Next ECB Chief

The Eurogroup is beginning discussions on who will succeed Christine Lagarde as head of the European Central Bank (ECB), Reuters reports.

Candidates must be nominated by Friday at the latest, but the contest already appears to be shaping up as a face-off between the former governor of the Dutch central bank, Klaas Knot, and the Spaniard Pablo Hernández de Cos, who leads the Bank for International Settlements (BIS).

Lagarde has announced that she will step down in early February.

“We have a tight schedule, so we need to act quickly,” says Greek Finance Minister Kyriakos Pierrakakis at a press briefing in Brussels.

The heads of state and government from the eurozone countries will decide who gets the job later this year. Pierrakakis believes that the availability of several positions to be filled may make it easier for the countries to reach a solution.

Market Sentiment
Top Banker: US Turmoil Attracts Capital to Europe

Unrest in US financial markets will benefit Europe as investors seek safer havens, says Nadia Calviño, President of the European Investment Bank (EIB), in an interview with Bloomberg TV.

“The turbulence in the US is causing capital to flow into Europe. I expect this trend to continue,” she told the network.

At present, Calviño sees no negative impact on investments in Europe, pointing instead to strong demand for the EIB’s own bonds.

Last week’s AI-related market jitters, which dragged down US stock exchanges, were triggered by the US midterm elections.  

Today’s Stock Market
Nvidia shares fall: “It would be an absolute bloodbath”

Nvidia shares were already down 6 percent during trading on the Frankfurt Stock Exchange, before falling sharply on the New York Stock Exchange. This follows the company’s board launching an investigation into CEO Jensen Huang’s relationship with a woman suspected of spying for China.

Analysts warn that the uncertainty surrounding the CEO could weigh on the stock and delay investments and product launches, according to news agencies.

Gary Black, a fund manager at Future Fund, believes it will be difficult for Jensen Huang to remain as CEO.

Chris Weston, head of research at online broker Pepperstone, offers a different assessment.

“If we truly believed he was going to step down [...] the stock would crash. It would, in fact, be an absolute bloodbath,” he told the news agency. 

The Money Laundering Scandal at Nordea
Analysts: Nordea Got Off Lightly in Money Laundering Case

Major bank Nordea has been ordered to pay 155 million Danish kroner for violating the country’s anti-money laundering laws. The fine was unexpectedly low, says Mark Elving Naur, an analyst at Danske Bank, according to the news agency TT.

Nordea was found liable for failing to sufficiently scrutinize suspicious currency transactions. Prosecutors had sought a penalty of 6.6 billion Danish kroner.

Nordea had argued for an acquittal and states that it has not yet decided whether to appeal the verdict.