Weekly News 18.05.2020–22.05.2020


Important events this week include the ZEW economic sentiment index in Germany, inflation in the euro area and Argentina’s effort to reach an agreement with creditors.

 

Major Events on the Economic Calendar

  • Germany releases the ZEW economic sentiment index on May 19.
  • The EU releases the latest data on the latest consumer price index (CPI) on May 20.
  • The US releases a report on existing home sales on May 21.
  • Germany releases the manufacturing purchasing managers index PMI) on May 22.

 

May 18. Economic Activity Starts Increasing

Ford’s motor company will restart operation in the UK. Mexican car manufacturers are also resuming their activities. On the same day, a number of domestic flights are scheduled to be resumed in India, and a casino will reopen in the US state of Louisiana.

 

May 19. China Cuts Tariffs on US Goods

From May 19, China excludes 79 items of US products from its retaliatory tariffs. The exemptions will last until May 18, 2021 and will affect rare earth metals, disinfectants, isotopes and radioactive elements.

Meanwhile, Washington continues to publicly accuse Beijing of spreading COVID-19.

 

May 21. US-Canada Border Restrictions

Border quarantine restrictions between the US and Canada expire on this day. Doug Ford, Prime Minister of Canadian province of Ontario, has earlier spoken against lifting the measures due to the high rate of epidemic spread in the United States.

Let us remind you: citizens of the USA and Canada have been allowed to visit the neighboring country for essential reasons since March 18.

 

May 22. Argentina Tries to Avoid Defaulting

By this day, Argentina must complete negotiations with its largest creditors to pay $500 million in foreign debt. If they don’t make an agreement to restructure the debt, the country may fall into default. This scenario might also have a strong negative impact on other Latin American countries.


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