World Trade Organization, David Brancaccio, Christine Lagarde discussed on Marketplace Morning Report with David Brancaccio
The guardians of interest rates have spoken. Not just about the cost of borrowing. What about paychecks? I'm David Brancaccio in New York. Good morning the Federal Reserve decided to keep interest rates unchanged yesterday. It's a complex decision. One factors wages spikes wages can spark inflation. But there's no spike marketplace's. Nancy Marshall Genzer asked chair Powell. It is briefing about this. What did you learn about wages? Well David they are. Rising average hourly earnings were up around around three percent last month over the same time last year but the unemployment rate is down to three and a half percent with workers that scarce wages Tipoki hypoc typically rise more. Yes so what's going on. Well you kind of have a lot of theories on that. So does Fed Chair Jerome Powell when I asked him at yesterday's press has comrades about this low wage growth he said low productivity was holding wages. Back he also blamed globalization. The idea that you can make manufacturer picture or even provide services anywhere in the world to anywhere in the world. I think that hangs over the wage setting process and everywhere pretty much you. Don't let's see there. There isn't the kind of traction in the wage market and how also said the labor market might not be as tight as he thought. It was intriguing intriguing meaning meaning we keep seeing people moving off the sidelines and getting jobs and these are people who gave up looking for work and were unemployed for a long time nine. They're now getting jobs. Pal says there may be more people like that. Maybe workers aren't so scarce if employers are still getting applications for job openings. They won't feel the need to raise wages all right so fed yesterday today. It's the European Central Bank. The new head of the CBI Christine Lagarde former International Monetary Fund chief will do the economic and interest rate briefing. It is a subtle art communicating. This stuff trying to say something but not enough to freak out markets are marketplace colleague. The BBC's Victoria Craig Greg now on how Lagarde's predecessors standard if former ECB. Chief Mario Draghi taught the world anything about monetary policy. It's that words words matter during the eurozone debt crisis in two thousand twelve. He proved that point in his famous off the cuff. Pledge to do whatever it takes to preserve the euro it only only make sense. Then that newly-installed boss Christine Lagarde will be in sharp focus today. Investors will be searching for even the smallest clues about any looming policy changes the ECB is expected to keep rates steady but after relaunching its financial crisis era bond buying program in September Ms Lagarde could remark on any adverse defects so far and their eventual impact on policy next year when it comes to interest rates. She said that rather than be considered a traditional monetary policy hawk doc preferring higher interest rates or dove preferring low ones. She's a self described owl an animal. She calls very wise. That has been interpreted it to me. She'll keep ECB policy the same at least for the next several months in London. I'm the BBC's Victoria Craig for marketplace. Let's check markets. The Dow S&P NASDAQ futures are up slightly. A tenth of a percent or less the footsie in London is up five tenths percent on election day. The brand new stock in the massive of Saudi oil company Aramco rose on its second day of trading to the point that on paper it was worth two trillion dollars. That's a figure. The Saudi Crown Prince was said to be shooting toward you spoke. We listened. Marketplace socks are back and right. Now we have a real deal for you you you can get not one but two pairs of socks. That's one for each of our new marketplace designs when you donate sixty dollars or more today or you can sign up to give five dollars a month. Same deal support independent news you trust at Marketplace Dot Org and get these snazzy new marketplace socks as a thank you for your your contribution and thank you for believing what we do. We really do appreciate it what you might call. The A Global Supreme Court for trade disputes is out of order not functioning. This is where the appeals go at the World Trade Organization. There are enough members on the Appellate Body for it to do its thing because the US has been blocking replacements as the terms of judges expire. Now three years ago there were seven judges. They're now down to one annette marketplace's Sabrina sure has more. The trump administration has argued the WTO is infringing on rights. The US never agreed to give up when the WTO was created in nineteen ninety eighty five in others generally objection by the United States that the Appellate Body's going beyond its mandate kind of creating law. Rachel Brewster is a professor of law at at Duke she and other observers say the. US has been vocal in its criticisms but hasn't been actively negotiating to reform the WTO. Because they say the trump administration believes believes it would be better off without it. The trump administration is fundamentally opposed to the idea of a rule of law system in trade. The other one hundred sixty three member member countries who presumably still want the WTO to keep operating have a few options. Jennifer Helmet is with the council on Foreign Relations and used to serve on the WTO Appellate Body. It could be be that the countries choose to exercise restraint meaning countries could give up their right to appeal lower panel rulings the WTO just live with rulings. They don't like instead instead of appealing them the other way that the European Union and Canada Norway and others are proposing is to use within the rules itself an arbitration process again. A way eight to work around the fact that the equivalent of the Supreme Court for Trade is shut down. There are problems with that. Richard Winer is an attorney with Sidley. Austin one is that all all the parties to the dispute including third parties have to agree the. US IS A party to about fifty percent of proceedings he says and could object to any work arounds and that would shut shutdown that process meaning the WTO's ability to settle. Disputes could be damaged for some time again. Rachel Brewster. It looks like it's just going to go on indefinitely until a new American administration changes it's policy and more trade disputes might be waged the old fashioned way through destabilizing trade wars and bare knuckled negotiation in New York. I'm sure for marketplace and the Hollywood reporter says a TV projects in development about the great fall of the shared office space. This company we work as the company tried to big initial public offering of stock this autumn than didn't amid investor skepticism and perceptions of the way the boss comported himself to play the real life. We work founder. Adam Newman will beat Nicholas Braun of. HBO's Succession Bronze Succession Characters. Kind of I dunno no hapless so we may have to find more master of the universe vibe in his new role Braun does have height on his side. He's six foot seven. The real we work is six five York. I'm David Brancaccio and this is marketplace morning report from A._P._M.. American public media..