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EMERGING MARKETS: Global News: November 27

EMERGING MARKETS
  • EU (BBG) – the ECB needs to be wary of cutting interest rates too far as borrowing costs are already near a level that no longer restrains the economy and going lower could backfire, according to Executive Board member Isabel Schnabel. Officials can continue to loosen monetary policy but should do so only gradually to avoid taking rates below the so-called neutral threshold, Schnabel said in an interview.
  • ISRAEL / LEBANON (MNI) – the ceasefire between Israel and Hezbollah is intended to be permanent. The first target will be reaching 60 days. It is during these first two months that Hezbollah is supposed to move northward all operatives and arms between the 'blue line' (the Israel-Lebanon border) and the Litani River, and the IDF shift southward. If this milestone can be reached without a resumption of hostilities then it is a good sign of a more long-lasting peace.
  • US / CHINA (BBG) – President-elect Donald Trump’s pick for the top trade position sees China as a “generational challenge” to the US and has advocated for a strategic decoupling from the country. Jamieson Greer, who’s been nominated as the US Trade Representative, played a key role in imposing tariffs on China during Trump’s first term. As former chief of staff to Robert Lighthizer, who was Trump’s trade representative then, Greer shares a tough stance on Beijing.
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  • EU (BBG) – the ECB needs to be wary of cutting interest rates too far as borrowing costs are already near a level that no longer restrains the economy and going lower could backfire, according to Executive Board member Isabel Schnabel. Officials can continue to loosen monetary policy but should do so only gradually to avoid taking rates below the so-called neutral threshold, Schnabel said in an interview.
  • ISRAEL / LEBANON (MNI) – the ceasefire between Israel and Hezbollah is intended to be permanent. The first target will be reaching 60 days. It is during these first two months that Hezbollah is supposed to move northward all operatives and arms between the 'blue line' (the Israel-Lebanon border) and the Litani River, and the IDF shift southward. If this milestone can be reached without a resumption of hostilities then it is a good sign of a more long-lasting peace.
  • US / CHINA (BBG) – President-elect Donald Trump’s pick for the top trade position sees China as a “generational challenge” to the US and has advocated for a strategic decoupling from the country. Jamieson Greer, who’s been nominated as the US Trade Representative, played a key role in imposing tariffs on China during Trump’s first term. As former chief of staff to Robert Lighthizer, who was Trump’s trade representative then, Greer shares a tough stance on Beijing.