United States, Asia, President Trump discussed on Marketplace Morning Report with David Brancaccio
Ahead of China's Lunar New Year celebrations concern about a deadly virus. Hit Asia's financial markets today. I'm David Brancaccio show. At least six people are dead and about three hundred confirmed sick in the Chinese city of Wuhan with the spread of a new strain of SARS like virus the World Health Organization his gathering tomorrow to decide whether to declare an international health emergency. All this says large numbers of people in Asia or set to travel for a big holiday marketplace colleague League the BBC's Victoria. Craig is following this for us from London so normally people take money out of the market ahead of this holiday but today that China's Shanghai Composite Index ended down one point four percent while the currency the yuan fell about half a percent. That's the biggest daily decline since August. If we drill down into the details I was just a bit shares of drug makers and companies that make facemasks rose by ten percent hitting the daily limit in China. Now there's not currently a treatment or vaccine for this virus Irish so people are buying up supplies to protect themselves against the spread Shares of Chinese Entertainment Company is those casinos movie theaters even luxury brands. Those is there also falling today and again looking at the calendar the Lunar New Year holiday starts Saturday. How might all that travel that comes with with those celebrations further? Play into this This is the busiest travel season for Asia and very important spending period. So forbid of comparison I can hear about one hundred and sixteen million people travel across the US for Thanksgiving and Christmas. Every year estimates though in Asia are for three billion trips to to be made across the region in the next week for Lunar New Year. So if you think about it if health concerns caused people to cancel flights travel plans altogether. That means they're not spending money money. In the towns and the cities they visit and so that could have a broader economic impact on the continent all right and US airports have begun screening for this corona virus as well marketplace colleague the BBC's Victoria Craig in London. Thank you thank you. Meanwhile with the impeachment trial opening in earnest in the Senate today president trump is in the mountains of Switzerland after delivering business and political leaders at Davos bullish assessment of the US economy. He called the US today. Quote a roaring geyser of of opportunity given lower taxes and the lowest unemployment rate in about a half a century growing income inequality in the US. He did not address directly and despite the exalted altered state of the US economy. The president today took a firm Swipe at the US Central Bank saying the Fed raised rates too quickly. And have they've been too slow to bring them back down. Jeffrey Cleveland is the Chief Economist. At payden and Regal in Los Angeles I think the Federal Reserve is an easy punching bag bolt for those on the right and those on on the left. I you know I think. The president wants Easier monetary policy obviously in an election year. Any president would want easier. Monetary policy to to boost is the boost the economy My personal opinion is appropriate. Setting for the federal funds rate has been reached. We we have easy policy in the US us the economy is doing fine. And we have growth Right around two percent and unemployment rate. That's lowest it's been fifty years. So how much more could you really really want out of the Central Bank. Now you do have this indicator for world trade that you'd like to share with us. It's out of South Korea and even though this is a brand new year here we have some twenty twenty data. Well David as you know. Most data is stale but this data point in particular attracts the first twenty days of South Korean Exports Sports and we just passed January twentieth and the data was week all throughout twenty nineteen as we saw weak global economic data We global trade volumes. But the data was down point two percents that's crean exports down point two percent versus eight year ago. It's a sign of a bottoming mean out in global economic activity. Jeffrey Cleveland is the chief economist at Payden and Regal. Thank you so much. Thank you now. The International Monetary Fund today slightly lowered its global economic forecast for this year.