"So, global growth down 0.75%" – Repubblica.it



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MILANO – Continue the ballet statements that have hit the trading rooms of the financial markets since the White House. After a partial opening to a relaxation with China – in the perspective of the G20 in Buenos Aires in the coming days – President Donald Trump returns to brandish the ax and strike the world trade. As he often does, he does it via Twitter. According to his profile, the tycoon announced that the administration at its head was studying customs duties on cars produced abroad, after General Motors announced its restructuring plan for the closure of several factories in the United States. A threat condemned by the warning: "A president has vast powers over these issues".

The commercial battle

With the introduction of tariffs on cars produced overseas, "many more cars would have been built here" in the United States "and GM would not close its plants in Ohio, Michigan and Maryland, "wrote the US president on the social network. According to Trump, with 25% rates on imported cars – in the same configuration as "light trucks" – domestic production would be much higher. "Be smart, Congress": Trump's invitation to remember that for decades, foreign countries have benefited from this position.

….. and G.M. they would not close their factories in Ohio, Michigan and Maryland. Get smart Congress. They have been taking advantage of the US market for decades. The president has great power on this issue – because of Mr G. event, he is studying now!

– Donald J. Trump (@realDonaldTrump) November 28, 2018

The externalities in favor of social networks that fall as the International Monetary Fund, in the perspective of the Argentine G20, point out that any Trump administration tariff on cars could lead to a reduction in global growth of 0.75%. The director, Christine Lagarde, also issued an alarm call: trade barriers are "counterproductive for everyone". It is imperative not to cross new barriers and reverse recent barriers. We have a unique opportunity to improve the world trading system, "says the IMF's number one, addressing the G20 countries." Liberalizing trade in services can boost the G20's GDP. half a point, or $ 350 billion, in the long run, "Lagarde added.

And a similar warning was issued by the US Federal Reserve, the US Central Bank, that Trump keeps attacking as it gradually increases the cost of money. The Fed warned that geopolitical uncertainty and trade tensions were "potentially high threats" in its first report on the risks to financial stability released today. "Escalating trade tensions, geopolitical uncertainty or other adverse shocks could reduce investors' appetite for risk in general". In summary, stock market investors could bear such tensions: "The fall that would lead to badet prices could be particularly significant, their valuation seems to be high compared to historical levels."

Concerns about Italy

But not only has the trade examined the IMF in its overall badysis of the economy. High debt, growing spreads and slower growth: the International Monetary Fund (International Monetary Fund) is worried about several fronts in the paper ad hoc for the Argentine G20. Sovereign debt exceeds pre-crisis levels in several advanced and emerging economies of the core group: "Margins have increased in some countries, including Italy, where fears of high public debt and could trigger new negative reactions in the market, "noted the organization led by Lagarde.

It is precisely in Belpaese, engaged in the game of Maneuvering with Europe, that a consolidation effort is needed. "Although many advanced countries are planning fiscal consolidation, more ambitious efforts are needed, which is essential for Italy, where debt is already high and growth is above potential," the fund said. "For many G20 economies, the time has come for significant fiscal consolidation, with continued high growth in various economies, the window of opportunity to reduce public debt is still open," explained the bottom.

In general, this moment is crucial for the many signs of slowdown observed. Growth is slowing in many advanced economies and "has slowed more than expected in the eurozone, especially in Italy and Germany," the IMF noted in the document prepared for the Buenos Aires summit. "The global expansion continues, but has become more uneven and the downside risks are increasing," he added.

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If you wish to continue listening to another ringtone, perhaps imperfect and irritating, continue to do so with conviction.

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topics:
IMF
public accounts
growth
g20

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