Asian shares wobbled on Friday as investors braced for U.S. tariffs against China, while the Euro flirted with two-week lows after a cautious European Central Bank indicated it would not raise interest rates for some time. U.S. President Donald Trump has made up his mind to impose “pretty significant” tariffs and will unveil a list targeting US$ 50 billion of Chinese goods on Friday, an administration official said. Beijing has warned that it was ready to respond.
Italy’s two anti-establishment parties promised on Friday to ramp up spending in a program for a new coalition government, putting them on a collision course with the European Union despite having dropped some of their most radical proposals.
Sterling fell against the dollar and euro on Monday as investors worried about Theresa May's ability to stay on as British prime minister and get what they consider to be a good exit deal from the European Union.
The Euro has risen after pro-EU Emmanuel Macron won France's presidential vote by a large margin. The single currency strengthened 0.2% against the dollar as investors were reassured over the future stability of the European project. Macron has proposed cutting corporation tax and changes to the labour market.
The value of the Euro jumped to a five-month high, after the first round of voting in the French presidential election on Sunday. Results indicate that independent pro Europe pro deregulation Emmanuel Macron, and far-right Marine Le Pen are through to the final round.
Front National leader Marine Le Pen has called for a new French currency and pledged to hold a referendum on the country’s membership of the European Union if she is elected French President later this year.
Many travelers buying foreign currency at the UK's airports are now receiving less than one Euro to the pound, reports the BBC. The continued fall in sterling's value means that the average rate available at 17 airport bureaux de change is now just 99 euro cents to the pound. The worst rate is currently 88 Euro cents at Moneycorp at Southampton airport and the best is €1.06 from the Change Group at Glasgow Prestwick.
The European Central Bank bought 348 million Euros of corporate bonds in the first three days of such purchases last week, it said on Monday, as part of its 1.74 trillion Euro scheme to revive growth and inflation. The figures are at the upper end of analyst predictions, indicating a strong start for the program and suggesting that the ECB was keen to show it can buy significant volumes.
Greek Prime Minister Alexis Tsipras says he does not believe in a bailout offered by Euro zone leaders, but is willing to implement it. Tsipras described the deal as harsh, but said it was the only way for Greece to remain in the Euro.
Europeans, including IMF chief and Americans clashed on Thursday in Davos during a debate on monetary stimulus that degenerated into a skirmish over the European Union economy and the Euro.